Question

Complete the table and find the balance A if $5000 is invested an an annual rate of 6% for 15 years and compounded n times a year​

Answer 1

1: 11982.79

2: 12136.31

4: 12216.09

12: 12270.46

365: 12297.10

Explanation:

The compound interest formula is A=P*(1+r/n)^nt

P=principal amount

r=rate

n=number of compounds per period

t=number of periods

In this situation, the principal amount is 5,000=P. The rate is 6%, so r=0.06. n is equal to the top number in the table. And this is 15 years, so t=15.

For 1, it would be A=5,000*(1+.06/1)^1*15, or A=5,000(1.06^15), or 11982.79.

For 2, it would be 5,000*(1+.06/2)^2*15, or 5,000*(1.03^30), or 12136.31.

And so forth. Good luck