Question

I need help solving B and C can someone help me

Answer 1

Given data-

The principle is 15000$

The interest is 4%

The number of years is 4 years.

To find-

b) Compound interest monthly

c) Compound interest annually

Explanation-

To solve the problem, we have to use the formula to find the amount. Then we can find the answer.

Formula-

The formula we need is

`A=P(+(r)/(100))^n`

Here-

`\begin{gathered} A-Amount \\ P-Principle \\ r-Rate \\ n-Time \end{gathered}`

Solution-

b)

The total number of years is 4 years.

The interest is compounded monthly.

So, the value of n is

`\begin{gathered} (1)/(12)*4 \\ =(1)/(3) \end{gathered}`

Now, using the formula, we get

`\begin{gathered} A=p(1+(r)/(100))^n \\ =15000(1+(4)/(100))^{(1)/(3)} \\ =15000*((100+4)/(100))^{(1)/(3)} \\ =15000*((104)/(100))^{(1)/(3)} \\ =15197.39 \end{gathered}`

So, the amount is 15197.39 $

c)

The interest is calculated yearly

So, the value of n is 4

Now, using the formula, we get

`\begin{gathered} A=P(1+(r)/(100))^n \\ =15000(1+(4)/(100))^4 \\ =15000((100+4)/(100))^4 \\ =15000((104)/(100))^4 \\ =15000*(104)/(100)*(104)/(100)*(104)/(100)*(104)/(100) \\ =17547.87 \end{gathered}`

So, the amount is 17547.87 $

Answer-

The answer for b) is 15197.39 $ and c) is 17547.87 $