Answer:
$48,739.50
Step-by-step explanation:
You are going to want to use the simple interest formula for this.
[tex]I = Prt[/tex]
P = principal amount
r = interest rate (decimal form)
t = time (years)
First convert 4.5% into its decimal form:
4.5% -> [tex]\frac{4.5}{100}[/tex] -> 0.045
Next, we need to change 120 months into years:
[tex]\frac{120}{12} =10[/tex]
(10 years)
Now, plug in the values into the equation:
[tex]I=108,310(0.045)(10)[/tex]
[tex]I=48,739.50[/tex]
The interest earned after 120 months was $48,739.50
