Asked by Jennifer Aguilar on Jun 17, 2024
Verified
If the total interest earned on an investment at 6.6% compounded monthly for 3½ years was $1,683.90, what was the original investment?
Compounded Monthly
The process in which interest earned on an investment is added to the principal balance, and then future interest accrual includes the increased balance, recalculated on a monthly basis.
Total Interest Earned
The cumulative amount of interest received from an investment, loan, or savings account, over a particular period.
Original Investment
The initial amount of money invested in a project or security.
- Execute calculations using compound interest rate formulas to find out future and present values of investments and loans.
- Ascertain the total interest accumulated or obligated during the term of an investment or debt.
Verified Answer
SB
Learning Objectives
- Execute calculations using compound interest rate formulas to find out future and present values of investments and loans.
- Ascertain the total interest accumulated or obligated during the term of an investment or debt.