Answer:
We can use the formula for compound interest to solve this problem:
A = P(1 + r/n)^(nt)
Where:
A = the amount of money at the end of the investment period
P = the principal (the initial amount of money invested)
r = the annual interest rate (as a decimal)
n = the number of times the interest is compounded per year
t = the time period of the investment (in years)
In this case, we have:
P = $10,000
r = 0.12
n = 1 (compounded annually)
t = 1 + 4/12 = 1.3333 years
Plugging in the values, we get:
A = $10,000(1 + 0.12/1)^(1*1.3333)
A = $11,682.67
The compound interest earned is:
CI = A - P
CI = $11,682.67 - $10,000
CI = $1,682.67
Therefore, the compound interest paid on the investment is $1,682.67.
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Answers & Comments
Answer:
We can use the formula for compound interest to solve this problem:
A = P(1 + r/n)^(nt)
Where:
A = the amount of money at the end of the investment period
P = the principal (the initial amount of money invested)
r = the annual interest rate (as a decimal)
n = the number of times the interest is compounded per year
t = the time period of the investment (in years)
In this case, we have:
P = $10,000
r = 0.12
n = 1 (compounded annually)
t = 1 + 4/12 = 1.3333 years
Plugging in the values, we get:
A = $10,000(1 + 0.12/1)^(1*1.3333)
A = $11,682.67
The compound interest earned is:
CI = A - P
CI = $11,682.67 - $10,000
CI = $1,682.67
Therefore, the compound interest paid on the investment is $1,682.67.