Answer
The final amount calculated is $8006.40
Interest amount = $4006.40
Step-by-step explanation:
Given that
Principal = $4, 000
Time = 10 years
rate = 7%
Number of compounding periods = 4
Using the formula below
[tex]\begin{gathered} A\text{ = P ( 1 + }\frac{r}{n})^{nt} \\ A\text{ = 4000 ( 1 + }\frac{0.07}{4})^{4\cdot\text{ 10}} \\ A=4000(1+0.0175)^{40} \\ A=4000(1.0175)^{40} \\ A\text{ = 4000 }\cdot\text{ 2.00159} \\ A\text{ = \$8006.40} \end{gathered}[/tex]The final amount calculated is $8006.40
Final amount = Interest + Principal
Interest = Total amount - Principal
Interest = 8006.40 - 4000
Interest amount = $4006.40
