Question

7500 in account paying 1.5 compound interest, how much after 8 years

Answer 1

The amount of money after 8 years is $8448.69

Explanation:

The rule of the compound interest is

`A=p(1+r)^(t)` , where

• A is the new value

• P is the original value

• r is the rate in decimal

• t is the time in years

∵ There is $7500 in an account

∴ P = 7500

∵ The account paying 1.5% compound interest

∴ r = 1.5% = 1.5/100 = 0.015

∵ The money will invest for 8 years

∴ t = 8

→ Substitute all of these values in the rule above to find A

∵
`A=7500(1+0.015)^(8)`

→ Use your calculator to find the answer

∴ A = 8448.69

∴ The amount of money after 8 years is $8448.69