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Find the amount of interest on $35,000 at 9.72% compounded monthly for 32 months


Sagot :

9514 1404 393

Answer:

  $10,308.92 interest earned

Step-by-step explanation:

The account balance is given by ...

  A = P(1 +r/12)^n

where principal P earns interest at annual rate r compounded monthly for n months. In this case, the balance would be ...

  A = $35,000(1 +0.0972/12)^32 = $45,308.92

The interest earned is the excess of the balance over the original investment:

  interest = $45,308.92 -35,000 = $10,308.92