Question

?????????????????????????

Answer 1

Answer:

Interest earned = $32.835

Step-by-step explanation:

Given the following data;

Principal = $275

Number of times = 0.5

Interest rate = 2.9% = 0.029

Time = 4 years

To find the interest earned, we would use the compound interest formula;

$A = P(1 + \frac{r}{n})^{nt}$

Where;

A is the future value.

P is the principal or starting amount.

r is annual interest rate.

n is the number of times the interest is compounded in a year.

t is the number of years for the compound interest.

Substituting into the equation, we have;

$A = 275(1 + \frac{0.029}{0.5})^{0.5*4}$

$A = 275(1 + 0.058)^{2}$

$A = 275(1.058)^{2}$

$A = 275(1.1194)$

A = $307.835

Interest earned = 307.835 - 275

Interest earned = $32.835