Answer:
$835.71
Step-by-step explanation:
To solve this problem, we will use the compound interest formula:
<em>P = initial balance</em>
<em>r = interest rate (decimal)</em>
<em>n = number of times compounded annually</em>
<em>t = time</em>
First, lets change 4.75% into a decimal:
4.75% -> -> 0.0475
Now, plug the values into the equation:
Lastly, subtract <em>A </em>from the principal:
The interest earned is $835.71