If the value of the principal today is $230 and the interest rate is 1.33%,what is the total compound interest income at the end of 2 years?
A)$45.67
B)$22.54
C)$6.16
D)$5.78
E)None of the above.

Question

Quizplus · Accepted Answer

The compound interest formula is A = P(1 + r/n)^(nt). Here, P = $230, r = 0.0133, n = 1, t = 2. The compound interest is A - P. Calculating gives A = 230(1 + 0.0133)^2 = 236.16. The interest is 236.16 - 230 = $6.16.

If the Value of the Principal Today Is $230 and the Interest