Solve the problem.
-Sumi Kato's savings account has a balance of $\$ 767$. After 4 years, what will the amount of interest be at $3.5 \%$ compounded annually?

Question

Quizplus · Accepted Answer

The amount of interest can be calculated using the formula for compound interest: $A = P(1 + r)^n$, where $A$ is the amount of money accumulated after n years, including interest, $P$ is the principal amount (\$767), $r$ is the annual interest rate (3.5%, or 0.035 when expressed as a decimal), and $n$ is the time the money is deposited for (4 years). First, calculate the total amount after 4 years: $A = 767(1 + 0.035)^4$. Then, subtract the principal from the total amount to find the interest earned: $A - P$. After performing the calculations, the interest earned is approximately \$113.15.

Solve the Problem $767\$ 767$767 After 4 Years, What Will the Amount of Interest

Solve the Problem $\$ 767$ After 4 Years, What Will the Amount of Interest