Question

Use compound interest to find the total amount for $845 at 1.25% for 6.5 years

Answer 1

$911.02

Explanation:

First, converting R percent to r a decimal

r = R/100 = 1.25%/100 = 0.0125 per year,

then, solving our equation

I = 845 × 0.0125 × 6.25 = 66.015625

I = $ 66.02

The simple interest accumulated

on a principal of $ 845.00

at a rate of 1.25% per year

for 6.25 years is $ 66.02.