Math problem

Question

How much interest is earned in 5 years on a $1400 investment, if it is invested in an account which pay 4.8% and compounds interest continuously.

 

I believe I use the equation A=Pe ^rt

 but i am unsure how to find how much interest is earned from this equation.

Answer 1

Your equation is correct.  

 

The interest earned is the difference between the ending accumulated amount A and the beginning principal amount P, so once you find A then the interest is A - P