c. Anil invests $3500 in an accout that pays a rate of 2.4% per year compound interest. Calculate the total interest earned at the end of 5 years.
To calculate the total interest earned, we can use the formula:
Interest = Principal * Rate * Time
Given:
Principal = $3500
Rate = 2.4% per year
Time = 5 years
Converting the rate to decimal form, we have:
Rate = 2.4% / 100% = 0.024
Plugging the values into the formula, we get:
Interest = $3500 * 0.024 * 5
Interest = $420
Therefore, the total interest earned at the end of 5 years is $420.