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Damm [24]
2 years ago
9

Mary has $6,000 saved for her college education. She invested that money at 2.3% interest per year. Suppose her account earned i

nterest compounded annually. How much interest would she earn in 3 years?
Mathematics
1 answer:
igomit [66]2 years ago
8 0

Answer:

Interest= $423.59

Step-by-step explanation:

Giving the following information:

Initial investment (PV)= $6,000

Number of periods (n)= 3 years

Interest rate (i)= 2.3% = 0.023

<u>To calculate the Future Value, we need to use the following formula:</u>

FV= PV*(1+i)^n

FV= 6,000*(1.023^3)

FV= $6,423.59

<u>Now, the interest earned:</u>

<u />

Interest= 6,423.59 - 6,000

Interest= $423.59

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