Answer
(a)The total amount at the end of 10 years is 42,185.70 dollars.
(b) The amount of interest earned is 13,685.70 dollars.
Work Step by Step
Using the 4% column of the compound interest table, the compound amount for 10 years is found to be 1.4802. Multiply this amount times the principle to calculate the amount at the end of 10 years..
$1.4802×28,500=42,185.70$ dollars
The interest is the difference between the ending amount and the principle.
$42,185.70-28,500=13,685.70$ dollars
