How much interest did she earn?

Question

Anne inherited some money from her grandfather and put it in a bank account that earns 10% interest compounded quarterly. After 4 years, Anne had $600.00 in the bank account. How much interest did she earn? (ROUND TO THE NEAREST CENT)

1483 views around the world

You can reuse this answer
Creative Commons License

Answer 1 · 2018-02-22T22:42:44

$2971.82

The equation for compounded interest is
#A=Pe^(rt)#

A is the answer, P is the starting amount, e is a constant, r is the rate of change, t is times compounded.

#A=600e^(.1(16))#
#A=600e^1.6#
#A=600(4.9530324244)#
#A=2971.81945464#

rounded to the nearest cent:
#A=2971.82#