Question

Find the amount accumulated after

investing a principle P for t years at an
interest rate compounded k times per year.
P = $1,500 r = 7%
t=5 k= 4
Hint: A = P(1 +? /?)t
A = $[?]
Please someone help me

Answer 1

A = $2122.17

Explanation:

Before we start plugging everything in, we must convert the rate 7% to a decimal. Thus r = 0.07 as 7/100 = 0.07. Now we can plug in 1500 for P, 0.07 for r, 4 for k, and 5 for t in compound interest formula, then round to the nearest hundredth to find the amount, A:

A = 1500(1 + 0.07/4)^(4 * 5)

A = 1500(1.0175)^(20)

A = 2122.167294

A = 2122.17

Thus, the amount accumulated after investing $1500 for 5 years at an interest rate of 7% compounded 4 times per year is about $2122.17.