Question

Compound interest problems! Sick at home. This is due at 4 please help!

Answer 1

2) $726.65 | 3) $28,668.50

Explanation:

You are going to want to use the compound interest formula for these problems:

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

P = initial balance

r = interest rate

n = number of times compounded annually

t = time

Lets start with the first question...

First, change 2.5% into its decimal form:

2.5% ->
`(2.5)/(100)` -> 0.025

Now lets plug in the values into the equation:

`A=500(1+(0.025)/(4))^(15(4))`

`A=726.65`

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Now lets do the second question...

First, change 10% into its decimal form:

10% ->
`(10)/(100)` -> 0.1

Next plug in the values into the equation:

`A=2,500(1+(0.1)/(2))^(25(2))`

`A= 28,668.50`