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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

Verified Answer :

olemakpadu

Amount for compound interest,  A = P(1 + r)ⁿ

P= Principal = 70600,  r = rate = 4.2% per year = 0.042, n = number of years = 3.

A = P(1 + r)ⁿ

A = 70600(1 + 0.042)³

A = 70600(1.042)³    use calculator

A ≈ 79874.45 
 
Interest = Amount - Principal = 79874.45 - 70600 = 9274.45

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

Option d is the answer.

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