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Popular Word Problems >

Brendan deposited 3,967 in an account earning 5% interest compounded annually.To the nearest cent, how much interest will he earn in 5 years?

Solution

B re n d an d e p os i t e d 3, 967 in an a cco u n t e a r nin g 5% in t eres t co m p o u n d e d ann u a ll y . T o t h e n e a res t ce n t, h o w m u c h in t eres t w i ll h e e a r n in 5 ye a rs ?

Solution

Interest : 1096.01

Solution steps

Translate the problem into an equation:

5063.00895 \dots = 3967 + I

Solve for

I, 5063.00895 \dots = 3967 + I : I = 1096.01

Interest : 1096.01

Popular Examples

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