Question

Emelina Deposit $260 into a savings account seven years ago the account earns 8.5% interest compounded annually how much interest has she earned

Answer 1

Answer:

The interest which she has earned is $200.226

Step-by-step explanation:

Given as :

The principal deposited in account = $260

The time period = 7  years

The interest earn 8.5% compounded annually

Let The amount after 7 years = A

So , From compounded method

Amount = Principal × $(1+\frac{Rate}{100})^{Time}$

Or, Amount = $260 × $(1+\frac{8.5}{100})^{7}$

Or, Amount = $260 × $(1.085)^{7}$

Or, Amount = $260 × 1.7701

∴ Amount = $460.226

Now, Compound Interest added = Amount - Principal

or,   CI = $460.226 - $260

∴     CI = $200.226

Hence The interest which she has earned is $200.226    Answer

Answer 2

Answer:

$200.23

Step-by-step explanation: