Find the interest earned
$15,500 for 7.5 years at 4.2% annual compound interest

To find the interest earned on a principal amount with compound interest, we use the formula:

\[
A = P \left(1 + \frac{r}{n}\right)^{nt}
\]

Where:
- $A$ = the final amount (principal + interest)
- $P$ = the principal amount (initial investment) = $15,500
- $r$ = annual interest rate (in decimal) = 4.2% = 0.042
- $n$ = number of times interest is compounded per year (since not specified, we'll assume it is compounded annually, so $n = 1$)
- $t$ = time (in years) = 7.5

The interest earned will be:

\[
\text{Interest} = A - P
\]

Let's calculate this.The interest earned on $15,500 over 7.5 years at an annual compound interest rate of 4.2% is approximately **$5,602.78**.

Would you like further details or have any questions?

Here are some related questions you might find helpful:
1. What would be the total amount after 7.5 years (principal + interest)?
2. How does the interest change if compounded quarterly instead of annually?
3. How would the interest change if the rate was 5% instead of 4.2%?
4. What is the formula for continuous compound interest, and how does it compare to annual compounding?
5. How much time would it take to double the investment at 4.2% interest?

**Tip:** The more frequently interest is compounded, the more interest you'll earn!

Find the interest earned: $15,500 for 7.5 years at 4.2% annual compound interest.

Discover how to calculate the interest earned on $15,500 over 7.5 years at an annual compound interest rate of 4.2%. This problem uses the compound interest formula to find the interest earned and is suitable for students in Grades 9-12. Learn how compound interest grows over time.

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