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Find how much interest $10,000 earns in 2 years in a certificate of deposit paying 5.5% interest compounded quarterly.

The interest earned in 2 years is $__.
(Do not round until the final answer. Then round to the nearest cent as needed.)
Can anyone help me with this?? 100 points

Find how much interest 10000 earns in 2 years in a certificate of deposit paying 55 interest compounded quarterly The interest earned in 2 years is Do not round class=

Respuesta :

mhanifa

Answer:

  • $1154.42

Step-by-step explanation:

Given:

  • Deposit amount P = $10000
  • Interest rate r = 5.5% or 0.055
  • Time t = 2 years
  • Number of compounds n = 4

The interest is:

  • P*(1 + r/n)^(nt) - P =
  • 10000(1 + 0.055/4)^8 - 10000 =
  • 11154.42 - 10000 =
  • 1154.42

Apply compound interest formula

Amount

  • P(1+r/n)^nt
  • 10000(1+0.055/4)^4(2)
  • 11154.42

Interest

  • 11154.42-10000
  • 1154.42

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