Rick inherited some money from his grandfather and put it in a bank account that earns 4% interest compounded annually. After 7 years, Rick had 700.00 in the bank account. How much interest did he earn?

Solution

Solution

Interest : 168.06

Solution steps

Translate the problem into an equation:

700 = 531.94246 \dots + I

Solve for

I, 700 = 531.94246 \dots + I : I = 168.06

Interest : 168.06

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