Answer:
Total interest earned on the original deposit=$403.593
Explanation:
Total Interest earned after 6 years using compound Interest:
[tex]FV=PV(1+i)^n[/tex]
Where:
PV is the deposit amount
i is the interest Rate
[tex]FV=\$2,700(1+0.06)^9[/tex]
FV=$4561.593
Total Interest earned after 6 years=FV-PV
Total Interest earned after 6 years=$4561.593-$2,700
Total Interest earned after 6 years=$1861.593
Total Interest earned after 6 years using single Interest:
Total Interest=$2,700*0.06*9
Total Interest =$1458
Total interest earned on the original deposit=Total Interest earned after 6 years-Total Interest
Total interest earned on the original deposit=$1861.593-$1458
Total interest earned on the original deposit=$403.593
