Answer:
[tex]\$2,161.1[/tex]
Step-by-step explanation:
we know that
The compound interest formula is equal to
[tex]A=P(1+\frac{r}{n})^{nt}[/tex]
where
A is the Final Investment Value
P is the Principal amount of money to be invested
r is the rate of interest in decimal
t is Number of Time Periods
n is the number of times interest is compounded per year
in this problem we have
[tex]t=10\ years\\P=\$4,500\\ r=0.04\\n=1[/tex]
substitute in the formula above
[tex]A=\$4,500(1+\frac{0.04}{1})^{1*10}[/tex]
[tex]A=\$4,500(1.04)^{10}[/tex]
[tex]A=\$6,661.10[/tex]
Find the interest
[tex]I=A-P[/tex]
[tex]I=\$6,661.10-\$4,500=\$2,161.1[/tex]
