Answer:
After 5 years the interest earned is $117,979
Step-by-step explanation:
Compound interest is represented by the following equation.
[tex]\text{ Compound interest= P}(1+R)^t-P[/tex]Then, for a principal of $150,850 with an interest of 12.25% annually. After 5 years:
[tex]\begin{gathered} \text{ Compound interest= 150850(1+0.1225)}^5-150850 \\ \text{ Compound interest= \$117,979} \end{gathered}[/tex]