A bank offers an investment account with an annual interest rate of 1.44% compounded quarterly. Mai invests \3700 into the account for 5 years. How much interest is earned on Mai's investment after 5 years?

Solution

Solution

Interest : 275.71

Solution steps

Translate the problem into an equation:

3975.71072 \dots = 3700 + I

Solve for

I, 3975.71072 \dots = 3700 + I : I = 275.71

Interest : 275.71

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