The principal represents an amount of money deposited in a s

The principal represents an amount of money deposited in a savings account subiject to compound interest at the given Princ Com Rate 6% rate $8500 quarterly 4 years A. Find how much money there will be in the account after the given number of years B. Find the interest earned. A The amount of money in the account after 4 years is s (Round to the nearest hundredth as needed ) 6. The amount of interest eamed is s Round to the nearest hundredth as needed.)

Solution

The formula for annual compound interest including principal sum is : A = P (1 + r/n) (nt) where, A = the future value of the investment including interest P = the principal investment amount r = the annual interest rate n = the number of times that interest is compounded per year t = the number of years the money is invested for Requirment 1 The amount of money in the account after 4 years A = 8500 (1 + 0.06/4) (4*4) A = 8500 (1 + 0.015) (16) A = 8500 * 1.268986 A = 10,786.38 Requirment 2 Amount of Interest earned Interest = 10,786.38-8,500 Interest = 2,286.38