The compound amount is 16,337.50 dollars. The interest is 3,837.50 dollars.
Work Step by Step
Using the 5.5% column of the compound interest table, the compound amount for 5 years is found to be 1.3070. Multiply this amount times the principal to calculate the amount at the end of 5 years.. $1.3070×12,500=16,337.50$ dollars The interest is the difference between the compound amount and the principal. $16,337.50-12,500=3,837.50$ dollars