Answer:
$24,580.12
Step-by-step explanation:
Lets use the compound interest formula to solve:
<em>P = initial balance</em>
<em>r = interest rate (decimal)</em>
<em>n = number of times compounded annually</em>
<em>t = time</em>
First, change 14.8% into a decimal:
14.8% -> -> 0.148
Since the interest is compounded monthly, we will use 12 for n. Lets plug in the values now:
Now subtract that number from our original amount invested:
<u>The dollars earned in interest is $24,580.12</u>