Question

Fred invests $12,993 into an account that yields 5.59% interest annually. how much interest will Fred have earned after 16 years. Round answers to the nearest cent ( 2 decimal places)

Answer 1

Answer:

Fred would have earned $31,022.31 after 16 years.

Step-by-step explanation:

To calculate compound interest, the initial capital must be multiplied by the interest rate applied to the capital, and in turn, this number must be exponential by the number of years that the investment lasts. Thus, in the case, the equation would be the following:

12.993 x (1 + 0.0559) ^ 16

In this way, multiplying the result exponentially by 16 years, the final compound interest would be $ 31,022.31.