find the compound interest earned. round to the nearest cent. $600 at 5% compounded quarterly for 1 1/2 years

Mathematics

1 answer:

stepladder [879]4 years ago

6 0

Answer:

$46.43

Step-by-step explanation:

First, let's use the compound amount equation,

A = P(1+r/n)^(nt), where P is the principal, r is the annual interest rate as a decimal fraction, n is the # of compounding periods per year, and t is the number of years.

Here,

A = $600(1 + 0.05/4)^(4*[1 1/2]). Let's evaluate this:

A = $600*(1.0125)^6

= $646.43.

This is the amount due after 1.5 years if $600 were the original principal borrowed.

If you want ONLY the compound interest, subtract $600 from $646.43:

Compound interest was $46.43.

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4 years ago

Each year, a school allocates a sum of money for the library. The amount allocated each year increases by 2.5% of the amount all

Aleksandr [31]

Answer:

$66,505.8

Step-by-step explanation:

2005: $2,000

2006: $2,000*(1,25%)= $2,500

2007: $2,500*(1,25%)= $3,125

2008: $3,125*(1,25%)= $3,906.3

2009: $3,906.3*(1,25%)= $4,882.8

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You can do this process in an excel table (attached to this answer) and you will find the total amount that the school allocates each year to the library until year 2014. Then you use the excel formula "SUM" to sum all the values found each year. You will find that the total amount allocated to the library between 2005 and 2014 is $66,505.8