Robert places $500.00 in the bank for 5 years at a rate of 12%. How much interest will he earn at the end of the five years?

Respuesta :

Answer:

97.6

Step-by-step explanation:

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Answer:

381.17$

Step-by-step explanation:

the interset is 12% of the account so it increase with it, for example:

-year one: 500 * 12% = 60$

     the account become 560$

-year two: 560 * 12% = 67.2$

     the account is 627.2$ which is equal to 500 * (112%)^2

so in five years, the account become

500 * (112%)^5 = 881.17$

the interset in 5 years  = 881.17 - 500 = 381.17$