Answer:
$850.70 (nearest cent)
Step-by-step explanation:
Simple interest formula: A = P(1 + rt)
where:
- A = final amount
- P = principal (initial balance)
- r = annual interest rate (in decimal form)
- t = time (in years)
Given:
- P = $6,604.80
- r = 3.22% = 0.0322
- t = 4 years
Substituting given values into the formula, and solving to find A:
⇒ A = 6604.8(1 + 0.0322 · 4)
= 6604.8(1.1288)
= $7455.50 (nearest cent)
Therefore, to find the amount of interest earned, subtract the principal from the final amount:
⇒ I = A - P
= 7455.50 - 6604.80
= $850.70 (nearest cent)
