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If $9237.05 is put into an account paying %8.82/ a compounding yearly, how much interest will be earned after 16.7 years?

Respuesta :

rvkacademic

Answer:

$28,656.82

Step-by-step explanation:

I used the compound interest calculator

A = P(1 + r/100)ⁿ

where A = amount accrued, P = investment amount r = rate% and n = number of years

r = 8.82% = 8.82/100 = 0.082 so 1 + r/100 = 1.0882

[tex]\\A = P(1.0882)^{16.7} = \$37,893.87\\\\\mathrm {Interest} = \$37,893.87 - \$9237.05 = \$28,656.82[/tex]

semsee45

Answer:

$28,656.82

Step-by-step explanation:

Annual Compound Interest Formula

[tex]\large \text{$ \sf I=P\left(1+r\right)^{t} -P$}[/tex]

where:

  • I = Total interest earned.
  • P = Principal amount invested.
  • r = Interest rate (in decimal form).
  • t = Time (in years).

Given:

  • P = $9237.05
  • r = 8.82% = 0.0882
  • t = 16.7 years

Substitute the given values into the formula and solve for I:

[tex]\implies \sf I=9237.05(1+0.0882)^{16.7}-9237.05[/tex]

[tex]\implies \sf I=9237.05(1.0882)^{16.7}-9237.05[/tex]

[tex]\implies \sf I=9237.05(4.1023777...)-9237.05[/tex]

[tex]\implies \sf I=37893.8685...-9237.05[/tex]

[tex]\implies \sf I=28656.8185...[/tex]

Therefore, the amount of interest that will be earned after 16.7 years is $28,656.82 (nearest cent).

Learn more about annual compound interest here:

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