SOLUTION:
Case: Compound Interest
Method:
The Amount is given as:
[tex]A=P(1+\frac{r}{n})^{nt}[/tex]P=$520
t= 1 year
r= 5.5% or 0.055
n=1
Therefore:
[tex]\begin{gathered} A=520(1+\frac{0.055}{1})^{1\times1} \\ A=520(1.055)^1 \\ A=520\times1.055 \\ A=548.60 \end{gathered}[/tex]The Interest therefore is:
I= A - P
I= 548.60 - 520
I= $28.60.
Final answer:
The Interest,
I= $28.60.
