203k views
0 votes
Can u do question b pls​

Can u do question b pls​-example-1

1 Answer

3 votes

Answer: a) $481.62 b) $16,569.76

Explanation:

The formula for compound interest is:
A = P(1 + r)^t where

  • A is the accrued amount (balance)
  • P is the principle (initial deposit)
  • r is the rate (convert percentage into a decimal)
  • t is the time (number of years)

Given: P = 3000, r = 1.15% (0.015), t = 10


A = 3000(1 + 0.015)^(10)\\\\\\A = 3000(1.015)^(10)\\\\\\A = 3,481.62

Interest Earned = accrued amount - principle

= 3,481.62 - 3,000

= 481.62

******************************************************************************************

I couldn't remember the formula so I created a table:


\begin{array}r\underline{Jan\ 1}&\underline{Interest\ Earned}&\underline{Deposit}&\underline{Balance}\\2019&0&3000&3,000.00\\2120&3000(1.015)&1200&4,245.00\\2121&4245(1.015)&1200&5,508.68\\2122&5508.68(1.015)&1200&6,791.31\\2123&6791.31(1.015)&1200&8,093.17\\2124&8093.17(1.015)&1200&9,414.57\\2125&9414.57(1.015)&1200&10,755.79\\2126&10755.79(1.015)&1200&12,117.13\\2127&12117.13(1.015)&1200&13,498.88\\2128&13498.88(1.015)&1200&14,901.37\\2129&14901.37(1.015)&1200&16,324.89\\\end{array}

2130 || 16324.89(1.015) | 0 || 16,569.76

User Shrys
by
8.1k points

No related questions found

Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

9.4m questions

12.2m answers

Categories