Answer:
$289,169.84 (to the nearest cent)
Step-by-step explanation:
Compound interest is based on the principal amount and the interest that accumulates on it in every period.
Compound Interest = P (1 + r)^n
where P = principal amount, r = annual interest rate (as a decimal), n = term, in years
So for this problem:
P = 185000
r = 1.4 ÷ 100 = 0.015
n = 30
Therefore,
Compound Interest = P (1 + r)^n
= 185000 x (1 + 0.015)^30
= 185000 x (1.015)^30
= 289169.8408...
= $289,169.84 (to the nearest cent)
