Kristen inherited some money from her grandfather and put it in a bank account that earns 5% interest compounded monthly. After 2 years, Kristen had 700.00 in the bank account. How much interest did she earn?Round your answer to the nearest cent.

Solution

Solution

Interest : 66.48

Solution steps

Translate the problem into an equation:

700 = 633.51779 \dots + I

Solve for

I, 700 = 633.51779 \dots + I : I = 66.48

Interest : 66.48

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