For the investment with interest compounded annually, find the final balance and the total interest earned. $70,600 for 3 years at 4.2% a. final balance: $70,896.52 interest earned: $296.52 b. final balance: $73,565.20 interest earned: $2965.20 c. final balance: $79,495.60 interest earned: $8895.60 d. final balance: $79,874.45 interest earned: $9274.45

Question

Savanah

Mathematics

30 November, 10:33

For the investment with interest compounded annually, find the final balance and the total interest earned. $70,600 for 3 years at 4.2% a. final balance: $70,896.52 interest earned: $296.52 b. final balance: $73,565.20 interest earned: $2965.20 c. final balance: $79,495.60 interest earned: $8895.60 d. final balance: $79,874.45 interest earned: $9274.45

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Answers (1)

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Benton · Answer 1

Amount for compound interest, A = P (1 + r) ⁿ

P = Principal = 70600, r = rate = 4.2% per year = 0.042, n = number of years = 3.

A = P (1 + r) ⁿ

A = 70600 (1 + 0.042) ³

A = 70600 (1.042) ³ use calculator

A ≈ 79874.45

Interest = Amount - Principal = 79874.45 - 70600 = 9274.45

d. final balance: $79,874.45 interest earned: $9274.45

Option d is the answer.