Answer:
The required amount Ahmet needs to pay after 6 years is $1619.14.
What is compound interest?
Compound interest is the interest on deposits computed on both the initial principal and the interest earned over time.
Amount = principal[1 + r/n]ⁿᵃ
Principal = P rate= r Time =a , n = compounding frequency
Here,
From the given data,
P = 700, r = 15% and t = 6 (n =1)
Now,
Amount = principal[1 + r/n]ⁿᵃ
Amount = 700(1 + 0.15)⁶
Amount = $1619.14
Thus, the required amount Ahmet needs to pay after 6 years is $1619.14.
Explanation: