Asked by Brianna

$12 000 is invested at 6% p.a. for 42 months. How much interest is earned each year and how much interest is earned after 2 years?

Answers

Answered by Reiny
I will assume compound interest,
i = .06/12 = .005
amount = 12000(1.005)^42 = ....
subtract the original 12,000 to find the interest.

for interest earned after 2 years
= 12000(1.005)^24 - 12000

"How much interest is earned each year "
- this would require 42 different calculations, since the interest is not constant, but increases each successive month
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