Jim just deposited $13,000 into his account at Traditions Bank.The bank will pay 1.3 percent interest,compounded annually,on this account.How much interest on interest will he earn over the next 15 years?
A)$238.16
B)$244.20
C)$360.70
D)$606.15
E)$623.70

Question

Quizplus · Accepted Answer

Interest on interest = $13,000 × (1 + 0.013)¹⁵ - [$13,000 + ($13,000 × 0.013 × 15)] = $244.20

Jim Just Deposited $13,000 into His Account at Traditions Bank