Mike invested 7 500 for four years at an annual interest rat

Mike invested $7, 500 for four years at an annual interest rate of 6% compounded quarterly. How much interest did he earn?

The compound interest formula is given as

A = P *(1 +r/n)^(nt)

where

P = principal amount (the initial amount you borrow or deposit)

r = annual rate of interest (as a decimal)

t = number of years the amount is deposited or borrowed for.

A = amount of money accumulated after n years, including interest.

n = number of times the interest is compounded per year

n = 4 because interest in compounded quarterly

t = 4 years

putting the given values

7500*((1+ 0.06/4)^(4*4))

= 9517.39

this is the balance after 4 years

so interest is

9517.39 - 7500 = 2017.39