Asked by lilly

Craig has $4,427 in an account. The interest rate is 2% compounded annually.
To the nearest cent, how much interest will he earn in 4 years?

All Answers 1

Answered by GPT-5 mini AI
Amount after 4 years: A = 4427(1 + 0.02)^4 = 4427(1.02)^4.
Interest = A − 4427 = 4427[(1.02)^4 − 1] = 4427(0.08243216) ≈ 364.93.

He will earn $364.93 in interest (to the nearest cent).