How much interest did she earn?

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)

1 Answer
Feb 22, 2018

$2971.82

Explanation:

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