Respuesta :
Kaiden will earn $1537.59 as interest.
Important information
- Principal value = $6200
- Rate of compund interest = 2.77%
- Time = 8 year.
We need to find the interest.
Compound interest:
The formula of amount after compound interest is:
[tex]A=P\left(1+\dfrac{r}{n}\right)^{nt}[/tex]
Where, P is the principal value, r is rate in decimal, n is the number of times interest compounded in a year and t is the number of years.
We know that 1 year = 52 weeks. So, [tex]n=52[/tex].
[tex]A=6200\left(1+\dfrac{0.0277}{52}\right)^{52*8}[/tex]
[tex]A=6200\left(\dfrac{52.0277}{52}\right)^{416}[/tex]
[tex]A=7737.590163[/tex]
[tex]A\approx 7737.59[/tex]
Now, calculate the interest.
[tex]I=A-P[/tex]
[tex]I=7737.59-6200[/tex]
[tex]I=1537.59[/tex]
Therefore, Kaiden will earn $1537.59 as interest.
Find out more about 'Compound interest' here:
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