Solve the problem.
-Find the amount of interest earned on the following deposit: $1,000 at 9% compounded annually for 4 years
A) $295.03
B) $538.62
C) $411.58
D) $1411.58

Question

Quizplus · Accepted Answer

The interest can be calculated using the formula for compound interest: A = P(1 + r/n)^(nt). Here, P = $1,000, r = 0.09, n = 1, and t = 4. The amount A after 4 years is $1,411.58. The interest earned is A - P = $1,411.58 - $1,000 = $411.58.

Solve the Problem. -Find the Amount of Interest Earned on the Following Deposit