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Mrclinego
Answered

Rania puts $15 000 into a savings account where it earns 4% per annum
compound interest.
a) What is her investment worth after two years?
b)How much interest has she earned?

Answer :

Part (a)

I'll assume the interest compounds annually.

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

A = 15000*(1+0.04/1)^(1*2)

A = 16,224

Answer: $16,224

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Part (b)

Subtract the result of part (a) and the original deposit amount to find the interest earned.

interest = A - P = 16,224 - 15,000 = 1,224

Answer:  $1,224

Corneltuttlego

Answer:

The final balance is $16,236.48.

The total compound interest is $1,236.48

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