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Home > MC2 > Chapter 10 > Lesson 10.1.4 > Problem 10-49


Determine the compound interest earned on invested at compounded annually for years.

According to the Math Notes box from Lesson 8.1.3:

The formula for compound interest is: 


  •  total amount including previous interest earned,
     interest rate for each compounding period, and 
    number of time periods

Using this formula, substitute the given values to solve for the total amount.

After solving for the total amount with compound interest, find the difference between the new total amount and the original principal to find the compound interest earned.