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Lawson opened a savings account 24 years ago with a deposit of $4,169.06. The account has an interest rate of 4.3% compounded quarterly. How much interest has Lawson earned? (3 points)

$4,348.33

$7,467.86

$11,636.92

$11,451.48

Respuesta :

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The Answer is $11,636.92

Base amount: $4,169.06
Interest Rate: 4.3%
Effective Annual Rate: 4.37%
Calculation period: 24 years 
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We can determine the effective annual interest rate, and plug it into our basic compounding interest formula:
Effective interest rate equals: 
(1 + (0.043÷ 4) )^4 - 1
Effective rate = 0.0437 = 4.37%

Plugging into formula; 
A = 4169*(1.0437^24)
A= 4169 * 2.79
A = 11,636.75
Investment is now worth 11,636.75
Subtract initial investment:
11,636.75 - 4169 = 7,467.75

Answer is B) 7,467.86

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