Question

What amount of money will grow to $71,200 in 2 years and 9 months at the interest rate of 6.41% p.a.? compound interestI already solved the problem but I want to see if I’m correct

Answer 1

Step-by-step explanation:

We will use the compound interst formula below

`A=P(1+(r)/(n))^(nt)`

Where,

`\begin{gathered} A=71200 \\ r=(6.41)/(100)=0.0641 \\ t=2(9)/(12)=2.75years \end{gathered}`

By substituting the values, we will have

`\begin{gathered} A=P(1+(r)/(n))^(nt) \\ 71200=P(1+0.0641)^(2.75) \\ 71200=P(1.0641)^(2.75) \\ P=(71200)/((1.0641)^(2.75)) \\ P=60.017.55 \end{gathered}`

Hence,

The final answer is

`\text{ \$}60.017.55`