Answer:
Interest earned in two years is approximately $1,837
Step-by-step explanation:
A= P( 1+r/n)^nt
Where,
A= principal + interest
P= principal= $10,000
r= interest rate = 8.5%
t= Time = 2years
n = periods = 4
A= P( 1+r/n)^nt
= 10,000(1+0.085/4)^4*2
= 10,000( 1 + 0.0213)^8
= 10,000(1.0213)^8
= 10,000(1.1837)
=11,837
A= $11,837
The interest earned in two years is
A = p + I
A - P = I
$11,837 - $10,000 = I
$1,837 = I
I= $1,837
Interest earned in two years is approximately $1,837
