Question

find the compound amount for the deposit and the amount of interest earned. $16,000 at 5% compounded monthly for 13 years. the compound amount after 13 years is $30,607.29. (do not round until the final answer. then round to the nearest cent as needed.) the amount of interest earned is $ . (do not round until the final answer. then round to the nearest cent as needed.)

Explanation:

Step1: Recall the interest - amount formula

The formula for the amount of interest $I$ is $I = A - P$, where $A$ is the compound - amount and $P$ is the principal amount.

Step2: Identify the values of $A$ and $P$

We are given that $P=\$16000$ and $A = \$30607.29$.

Step3: Calculate the interest

$I=A - P=30607.29 - 16000=\$14607.29$

Answer:

$14607.29$