On a beach trip, Lucy rents a bike from “Wheels by the Waves”, where they rent bikes for $12 plus $3 per hour. If Lucy spent $30
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Answer:
A = $35,198.32
Step-by-step explanation:
<em>Use the formula to calculate compound interest</em>:
A = P(1 + i)ⁿ
"A" for total amount after the time period
"P" for principal, or starting money
"i" for the interest rate in a compounding period
To calculate "i":
i = r / c
"n" for the number of compounding periods
To calculate "n":
n = tc
So, we can <u>combine the formulas</u> into:
"c" is the compounding periods in a year. (quarterly = 4)
<u>We know</u>:
P = 8000
r = 10% / 100 = 0.1
t = 15
c = 4
<u>Substitute the information in the formula</u>.
Solve "i" and "n"
Solve inside the brackets
Do the exponent before multiplying by 8000
A = 35198.318 Exact answer
A ≈ 35198.32 Round to two decimal places for money
Therefore she will have $35,198.32 after 15 years.