Answer: $42546.9 will be the earning in 4 years.
Step-by-step explanation:
The equation for compound interest follows:
[tex]A=P(1+\frac{r}{100})^n[/tex]
where,
A = total amount
P = Principle amount
r = rate of interest
n = number of years
We are given:
Earnings earned per month = $3250
Earnings earned per year = ($3250 × 12) = $39000
The values become:
[tex]P=\$39000\\r=2.2\%\\n=4yrs[/tex]
Putting values in above equation, we get:
[tex]A=39000(1+\frac{2.2}{100})^4\\\\A=\$ 42546.9[/tex]
Hence, $42546.9 will be the earning in 4 years.
