Solve the problem. Round to the nearest cent.
-Sumi Kato's savings account has a balance of $\$ 660$. After 11 years what will the amount of interest be at $4.5 \%$ compounded annually?
A) $\$ 411.08$
B) $\$ 417.08$
C) $\$ 726.00$
D) $\$ 400.08$

Question

Quizplus · Accepted Answer

To find the interest, use the formula for compound interest: $ A = P(1 + r/n)^{nt} $. Here, $ P = 660 $, $ r = 0.045 $, $ n = 1 $, and $ t = 11 $. Calculate $ A $ and subtract the principal to find the interest: $ A = 660(1 + 0.045)^{11} \approx 1071.08 $. The interest is $ 1071.08 - 660 = 411.08 $.

Solve the Problem $660\$ 660$660 After 11 Years What Will the Amount of Interest

Solve the Problem $\$ 660$ After 11 Years What Will the Amount of Interest