Answer:
$25,626.53
Step-by-step explanation:
You are going to want to use the compound interest formula, which is shown below.
[tex]A=P(1+\frac{r}{n} )^{nt}[/tex]
P = initial balance
r = interest rate (decimal)
n = number of times compounded annually
t = time
First, change 8.5% into a decimal:
8.5% -> [tex]\frac{8.5}{100}[/tex] -> 0.085
Now lets plug in the values into the equation:
[tex]A=10,000(1+\frac{0.085}{12})^{12(15)}[/tex]
[tex]A=35,626.53[/tex]
Lastly, subtract the total from the initial balance:
[tex]35,626.53 - 10,000 = 25,626.53[/tex]
Michelle earned $25,626.53 in interest.
