Respuesta :
The interest earned in the savings account after 12 months on a balance of $2000 if the interest rate is 1.5% APY compounded yearly is $30
How to calculate compound interest's amount?
If the initial amount (also called as principal amount) is P, and the interest rate is R% per unit time, and it is left for T unit of time for that compound interest, then the interest amount earned is given by:
[tex]CI = P\left(1 +\dfrac{R}{100}\right)^T - P[/tex]
The final amount becomes:
[tex]A = CI + P\\A = P\left(1 +\dfrac{R}{100}\right)^T[/tex]
For this case, we're specified that:
- Initial amount = P = $2000
- Interest rate 1.5% annually (compound interest), or R = 1.5
- Time for which interest will be compounded = 12 months = 1 year = T (converted time to year as interest is being compounded annually).
Thus, we get the amount of interest as:
[tex]CI = 2000\left(1 +\dfrac{1.5}{100}\right)^1 - 2000\\\\CI = 2000\times \dfrac{1.5}{100} = 30 \: \rm (in \: dollars)[/tex]
Thus, the interest earned in the savings account after 12 months on a balance of $2000 if the interest rate is 1.5% APY compounded yearly is $30
Learn more about compound interest here:
https://brainly.com/question/11897800
#SPJ2
