Answer:
Step-by-step explanation:
<u>Step 1: Find the equation
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Answer:
Answer:
-0.80% 866hh ftt to be a member states that
Answer:
<em>The interest earned is $302.18</em>
Step-by-step explanation:
<u>Compound Interest
</u>
It occurs when the interest is reinvested rather than paying it out. Interest in the next compound period is earned on the principal sum plus previously accumulated interest.
The formula is:
Where:
A = final amount
P = initial principal balance
r = interest rate
n = number of times interest applied per time period
t = number of time periods elapsed
The investment described in the question is of P=$600 at a rate of r=6%=0.06 for t=7 years compounded annually. The compounding period coincides with the time of interest rate, thus n=1.
Applying the formula:
A = $902.18
The interest is:
I = A - P = $902.18 - $600 = $302.18
The interest earned is $302.18
Your answer would be 61/12 after you did that math all you would have left is 61/6×1/2 which would be
61/12