Question

Lindsay invested $4500 at 4% interest compounded annually.

Answer 1

Answer:

2161.10

Step-by-step explanation:

Answer 2

Answer:

$\ 2,161.1$

Step-by-step explanation:

we know that    

The compound interest formula is equal to  

$A=P(1+\frac{r}{n})^{nt}$  

where  

A is the Final Investment Value  

P is the Principal amount of money to be invested  

r is the rate of interest  in decimal

t is Number of Time Periods  

n is the number of times interest is compounded per year

in this problem we have  

$t=10\ years\\P=\ 4,500\\ r=0.04\\n=1$  

substitute in the formula above  

$A=\ 4,500(1+\frac{0.04}{1})^{1*10}$  

$A=\ 4,500(1.04)^{10}$

$A=\ 6,661.10$    

Find the interest

$I=A-P$

$I=\ 6,661.10-\ 4,500=\ 2,161.1$