Question

please help and explain
Janise Smithson invested $4,000 for one year in a CD that earns interest at a rate of 4% compounded monthly. What is the interest earned during the year?

Answer 1

compound interest is every 2 months in ur statement therefore what is 4000/.04?

Answer 2

160?

Answer 3

oops

Answer 4

multiply :D

Answer 5

ok so every 2 month she makes $160 half of that is 80 right?

Answer 6

do you have the formula?

Answer 7

80x12=?

Answer 8

Formula for compound interest:
\[B_t = B_0 (1 + \frac{r}{n})^{nt}\]
Total interest earned is:
\[B_t - B_0\]
B is starting amount ---> 4000
r is int rate ---> 0.04
t is num of years ---> t = 1
n is num of times you compound in 1 year ---> n = 12 (12 months in year)