Nathan opened a savings account 11 years ago with a deposit of $2,665.79. The account has an interest rate of 4.8% compounded quarterly. How much interest has Nelson

earned?

$2,793.75

$1,798.99

$1,839.97

$4,505.76

Step-by-step explanation:

Use the Compound Amount equation: A = P (1+r/n) ^ (nt), where P is the original amount (principal), r is the interest rate as a decimal fraction, n is the number of compounding periods per year, and t is the number of years. Here we have:

A = ($2665.79) (1 + 0.048/4) ^ (4*11), or:

A = ($2665.79) (1.012) ^44 = $4505.76.

Subtracting the principal amount from this result, we get:

$4505.76 - $2665.79 = $1839.97

This matches the third of the four given possible answers.