Question

Find the amount accumulated after investing a principle P for T years at an interest rate compounded k times per year.

P= $3,350 r=6.2% t=8 k=1
(Hint: A=P(1+r/k)^kt

Answer 1

Explanation:

Since we have given that

Principle of investment= $4300

Interest rate = 6.2% p.a

So, the interest made is given by

The error was that Mara divided 6.2 by 10 instead of dividing by 100.

So, she made a mistake.

Error margin is given by

Hope this helps >3

Answer 2

A=3,350×(1+0.062)^(8)
A=5,420.52