Using compound interest, it is found that:
a) A(8) = 2389.66
b) t = 31.15
c) P = 1870.85
Compound interest:
- A(t) is the amount of money after t years.
- P is the principal(the initial sum of money).
- r is the interest rate(as a decimal value).
- n is the number of times that interest is compounded per year.
- t is the time in years for which the money is invested or borrowed.
In this problem:
- The APR is of 2.25%, hence
.
- No information about the number of compounding per year, hence
.
Item a:
, hence:
Item b:
, hence:
Item c:
, hence:
A similar problem is given at brainly.com/question/24850750