Answer:
the interest earned amount is $1,114.251
Step-by-step explanation:
The computation of the interest earned is shown below:
But before that the future value is
= Present value × (1 + rate of interest)^number of years
= $7,250 × (1 + 0.10)^1.5
= $7,250 × 1.10^1.5
= $8,634.251
Now the interets earned is
= $8,634.251 - $7,250
= $1,114.251
Hence, the interest earned amount is $1,114.251
