Compound Interest formula: A = P(1 + r/n)^(nt)
Where:
A = total amount after time t
P = principal amount invested ($13,000)
r = annual interest rate (3.5% or 0.035)
n = number of compounding periods per year (assuming yearly, so n=1)
t = time the money is invested for (6 years)
A = 13000(1 + 0.035/1)^(1*6)
A = 13000(1 + 0.035)^6
A = 13000(1.035)^6
A = 13000(1.163462)
A = 15133.006
Interest earned = Total amount - Principal
Interest earned = $15,133.01 - $13,000
Interest earned = $2,133.01
Therefore, Malik will receive $2,133.01 in interest after 6 years.
Use the problem below to answer the questions.
Malik invested $13,000 for 6 years at 3.5%. How much interest will he receive?
18.
Find the compound interest for the situation. Use the compound interest formula. Round answer to the nearest hundredth. Include appropriate unit in final answer. Use a calculator if needed.
Find the interest earned.
1 answer
1 answer