Given:
P = $7,403
r = 11% = 0.11
compounded annually ⇒ n = 1
Time = t = 4 years
We will find the interest earned using the following formula:
[tex]I=P(1+\frac{r}{n})^{nt}-P[/tex]Substitute with the given data:
[tex]\begin{gathered} I=7403\cdot(1+\frac{0.11}{1})^{1\cdot4}-7403 \\ I=7403\cdot1.11^4-7403 \\ I=7403\cdot(1.11^4-1)\approx3835.2752 \end{gathered}[/tex]Rounding the answer to the nearest cent
So, the answer will be The interest earned = $3,835.28
