Question

tyler inherited some money from his grandfather and put it in a bank account that earns 6% interest compounded monthly after 8 years tyler had $4,000.00 in the bank account how much interest did he earn

Answer 1

To find how much interest did he earn:

$\begin{gathered} i=\frac{r}{m} \\ \text{where, r= the interest rate per year} \\ m=number\text{ of compounding periods per year} \\ i=\frac{6\times12}{12}=6 \\ \text{After 8 years:} \\ 6\cdot8=48\text{ percent} \end{gathered}$

He earns 48% percent interest after 8 years.