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5 votes
. $750. at 4.6% interest compounded annually for 48 months

1 Answer

4 votes

Answer:

the ending balence would be about $1647.82 but if the question is asking the total compounded interest, it would be about $897.82

Explanation:

the formula for compound interest is

A = p ( 1 +
(r)/(n) )^
^(nt)

p = $750

r = 4.6% --> 0.046 ( /100)

n = 1 (charged once a year)

t = 48 months --> 4 ( /12)

bedmas or pemdas

A = $750 ( 1 + 0.046 / 1 ) ^ 1 x 4

A = $750 ( 1 + 0.046 ) ^ 1 x 4

A = $750 ( 1.046 ) ^ 1 x 4

A = $750 x 1.17089821

A = $897.82 (rounded #)

$897.82 + $750 = $1647.82

User Rob
by
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