A bank offers an investment account with an annual interest rate of 1.17% compounded monthly. Bob invests 3500 into the account for years.Answer the questions below. Do not round any intermediate computations, and round your final answers to the nearest cent. If necessary, refer to the list of financial formulas. How much interest is earned on Bob's investment after 2 years

Solución

A bank o ff ers an in v es t m e n t a cco u n t w i t h an ann u a l in t eres t r a t e o f 1.17% co m p o u n d e d m o n t h l y . B o b in v es t s 3500 in t o t h e a cco u n t f or ye a rs . A n s w er t h e q u es t i o n s b e l o w . Do n o t ro u n d an y in t er m e d ia t e co m p u t a t i o n s, an d ro u n d yo u r f ina l an s w ers t o t h e n e a res t ce n t . I f n ecess a ry, re f er t o t h e l i s t o f f inan c ia l f or m u l a s . Ho w m u c h in t eres t i s e a r n e d o n B o b^{'} s in v es t m e n t a f t er 2 ye a rs

Amount : 3582.82

Pasos de solución

Translate the problem into an equation:

A = 3500 (1 + \frac{0.0117}{12})^{12 \cdot 2}

3500 (1 + \frac{0.0117}{12})^{12 \cdot 2} = 3582.82490 \dots

Redondear al más cercano hundredth:

3582.82

Amount : 3582.82