Wyatt inherited some money from his grandfather and put it in a bank account that earns 14% interest compounded monthly. After 10 years, Wyatt had 1, 000.00 in the bank account. How much interest did he earn?Round your answer to the nearest cent.

Solution

W y a tt inh er i t e d so m e m o n ey f ro m hi s g r an df a t h er an d p u t i t in a bank a cco u n t t ha t e a r n s 14% in t eres t co m p o u n d e d m o n t h l y . A f t er 10 ye a rs, W y a tt ha d 1, 000.00 in t h e bank a cco u n t . Ho w m u c h in t eres t d i d h e e a r n ? R o u n d yo u r an s w er t o t h e n e a res t ce n t .

Interest : 751.4

Solution steps

Translate the problem into an equation:

1000 = 248.60343 \dots + I

Solve for

I, 1000 = 248.60343 \dots + I : I = 751.4

Interest : 751.4