Question

Can you solve this equation (decimals go up to 2 digits)

Answer 1

Give:

There are give that the principle amout is $1000.

Step-by-step explanation:

Accordig to the question:

We need to find the actual amount.

So,

From the formula of compound interest quarterly.

`A=P[1+((r)/(4))^(4t)]-P`

Where,

`\begin{gathered} P=1000 \\ r=6\%=0.06 \\ t=10 \end{gathered}`

Then,

Put all the above values into the given formula:

So,

`\begin{gathered} A=P[1+((r)/(4))^(4t)]-P \\ A=1000[1+((0.06)/(4))^(4(10))]-1000 \end{gathered}`

Then,

`\begin{gathered} A=1000[1+((0.06)/(4))^(4(10))]-1000 \\ A=1000[1+((0.06)/(4))^(40)]-1000 \\ A=1000[1+(0.015)^(40)]-1000 \\ A=1814.02-100 \\ A=814.02 \end{gathered}`

Final answer:

Hence, the amount is $814.02.