Answer: interest earned = $8942372340
$8942672340 this is amount after 25 years.
Explanation:
formula used: S= R*[ (1+i )ⁿ-1 / i ]
where:
S is future value
R is periodic payment
i is interest rate period
n is number of periods
R= $3000
n= 65-40=25 now 25*4=100 QUARTERLY that is why we used 4
i = 55% which is equal to 0.55
so, for quarterly i= 0.55/4= 0.138
now putting them in formula given above
S= 3000*[ (1+0.138)¹⁰⁰-1] / 0.138
S= $8942672340 (future value )
total money deposited = number of period * periodic amount
= $3000*100 = $300,000
interest earned = future value - total money deposited
= 8942672340 - 300,000
interest earned = $8942372340
