Question

Nelson opened a savings account 11 years ago with a deposit of $3,115.89. The account has an interest rate of 5.3% compounded monthly. How much interest has Nelson earned?

Answer 1

$2,458.77

Answer 2

X = Initial Deposit
P = Yearly Intrest Rate
n = Number of Years

Then Y = His Money after n Years = X(1+P/12)^12n = 3115.89(1+0.053/12)^12*11 = 5574.66

=> The interest Nelson earned = Y - x = $2,458.77