Question

TEST HELPO AGAIN

What is the final amount in a $1500 account earning .75% compound interest for 6 years?
Answers will include a $ sign and round all answers to hundredths place.

Answer 1

The final amount in the account after 6 years at compound interest is $1568.78 .

Explanation:

Given as :

The principal amount in account = p = $1500

The rate of compound interest = r = 0.75 %

The time period of the loan = t = 6 years

Let The Amount in account after 6 years = $A

From Compound Interest method

Amount = Principal ×
`(1+(\textrm rate)/(100))^(\textrm time)`

I.e A = p ×
`(1+(\textrm r)/(100))^(\textrm t)`

Or, A = $1500 ×
`(1+(\textrm 0.75)/(100))^(\textrm 6)`

Or, A = $1500 ×
`(1.0075)^(6)`

Or, A = $1500 × 1.04585

Or, A = $1568.775

So, The final amount= A = $1568.78

Hence The final amount in the account after 6 years at compound interest is $1568.78 . Answer