1What interest will be earned if 6800 is invested for 8 year

1.What interest will be earned if $6800 is invested for 8 years at 10% compounded monthly? (Round your answer to the nearest cent.)

The amount is $15083.11 and the interest is $8283.11.

Explanation

STEP 1: To find amount we use formula:

A=P(1+rn)nt

In this example we have

P=$6800 , r=10% , n=12 and t=8 years

After plugging the given information we have

AAAA=6800(1+0.112)128=68001.00833396=68002.218105=15083.11

STEP 2: To find interest we use formula A=P+I, since A=15083.11 and P = 6800 we have:

A15083.11II=P+I=6800+I=15083.116800=8283.11

A=P(1+rn)nt

A = total amount
P = principal or amount of money deposited,
r = annual interest rate
n = number of times compounded per year
t = time in years