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vlabodo [156]
3 years ago
6

What is the total interest earned in two years on an account containing $500 at 3.5% interest, compounded annually?

Mathematics
1 answer:
Andrei [34K]3 years ago
7 0

Answer: $35.6125

Step-by-step explanation:

3.5% = 0.035

Let's find the deposit amount with interest at the end of the first year:

500 + 500 · 0.035 = 517.5

Let's find the amount of the deposit with interest at the end of the second year:

517.5 + 517.5  · 0.035 = 535.6125

Find the total interest earned over two years:

535.6125 - 500 = 35.6125

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