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25 June, 20:33

An investment of $2,000 is earning interest at the rate of 6.2% compounded quarterly over 5 years. Approximately how much interest is earned on the investment?

a.

$724.67

b.

$2127.72

c.

$720.37

d.

$2720.37

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Answers (1)
  1. 25 June, 21:33
    0
    A=2,000 * (1+0.062:4) ^ (4*5)

    A=2,720.37

    Interest earned 2720.37-2000=720.37
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