For the investment with interest compounded annually, find the final balance and the total interest earned.

$70,600 for 3 years at 4.2%

A.
final balance: $70,896.52
interest earned: $296.52

B.
final balance: $73,565.20
interest earned: $2965.20

C.
final balance: $79,495.60
interest earned: $8895.60

D.
final balance: $79,874.45
interest earned: $9274.45

Question

For the investment with interest compounded annually, find the final balance and the total interest earned. 

$70,600 for 3 years at 4.2%
 
 A.
final balance: $70,896.52 
interest earned: $296.52
 
 B.
final balance: $73,565.20 
interest earned: $2965.20
 
 C.
final balance: $79,495.60 
interest earned: $8895.60
 
 D.
final balance: $79,874.45 
interest earned: $9274.45

anonymous · Answer

A = P (1+r)^t
A = (70000)(1.042)^3 = final amount

Interest = A - P