Question

Calculate the compound interest on $ 415for 1½ year at 7% per anum

Answer 1

We are given

Principal (P) = $415

Rate (r) = 7% = 0.07

Time (t) = 1.5 years

We want to find the Compound Interest

Solution

The formula for compound interest (I) is given as

`I=p(1+(r)/(n))^(nt)`

n = 1

`\begin{gathered} I=p(1+(r)/(n))^(nt) \\ I=415(1+(0.07)/(1))^(1*1.5) \\ I=415(1+0.07)^(1.5) \\ I=415(1.07)^(1.5) \\ I=459.3288916 \\ I=459.33 \end{gathered}`

Thus, the compound interest is $459.33