How much interest is earned on $470 at 4% for seven years?
How much interest is earned on a $470 investment at 4% for seven years?
109
To calculate the amount of interest earned on an amount, you need to use the formula for compound interest:
A = P(1 + r/n)^(nt) - P
Where:
A = the future value of the investment/loan, including interest
P = the principal investment amount (initial amount)
r = annual interest rate (as a decimal)
n = number of times that interest is compounded per year
t = number of years
In this case, the principal amount (P) is $470, the annual interest rate (r) is 4% (or 0.04 in decimal form), the number of times compounded (n) is usually not mentioned, so we'll assume it's compounded annually, and the number of years (t) is 7.
Substituting these values into the formula, we have:
A = 470(1 + 0.04/1)^(1*7) - 470
Simplifying further:
A = 470(1 + 0.04)^7 - 470
Calculate the values inside parentheses:
A = 470(1.04)^7 - 470
Now, calculate the value of (1.04)^7:
A ≈ 470(1.308) - 470
Multiply 470 by 1.308:
A ≈ 613.56 - 470
Subtract 470 from 613.56 to find the interest earned:
A ≈ 143.56
Therefore, the interest earned on $470 at 4% interest for seven years is approximately $143.56.
658/5
I = PRT
I = 470 * 0.04 * 7
I = ?
This assumes that the interest is not compounded.