Calculate the amount of interest earned in 9 years on $17,000 deposited in an account paying 10% annual interest, compounded quarterly

Answer: the amount of interest earned is $24353

Step-by-step explanation:

We would apply the formula for determining compound interest which is expressed as

A = P (1 + r/n) ^nt

Where

A = total amount in the account at the end of t years

r represents the interest rate.

n represents the periodic interval at which it was compounded.

P represents the principal or initial amount deposited

From the information given,

P = $17000

r = 10% = 10/100 = 0.10

n = 4 because it was compounded 3 times in a year and n = 12/3 = 4

t = 9 years

Therefore,

A = 17000 (1 + 0.1/4) ^4 * 9

A = 17000 (1 + 0.025) ^36

A = 17000 (1.025) ^36

A = $41353

the amount of interest earned is

41353 - 17000 = $24353