The amount of interest that the principal in each account had earned is as follows:
Raul Avila = $167.12
Samuel Griffin = $364.91
How is compound interest computed?
The compound interests can be calculated using the compound interest formula:
A = P(1 + \frac{r}{n})^{nt}
Where:
A = final amount
P = initial principal balance
r = interest rate
n = number of times interest applied per time period
t = number of time periods elapsed
It can also be computed using an online finance calculator as follows:
Data and Calculations:
Raul Avila:
N (# of periods) = 110 days
I/Y (Interest per year) = 5.5%
PV (Present Value) = $10,000
PMT (Periodic Payment) = $0
Results:
FV = $10,167.12
Total Interest = $167.12
Samuel Griffin:
N (# of periods) = 120 days
I/Y (Interest per year) = 5.5%
PV (Present Value) = $20,000
PMT (Periodic Payment) = $0
Results:
FV = $20,364.91
Total Interest = $364.91
Thus, using the online finance calculator, the compound interest for each principal has been computed as $167.12 and $364.91, respectively.
Learn more about computing compound interests at brainly.com/question/19950566
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