Answer:
470.273
Step-by-step explanation:
Given the following :
Amount of loan = $15,000
Interest rate = 2.5%, compounded monthly
Period = 1 year, 2 months, 25 days
Using the compound interest formula:
A = P(1 + r/n)^(n*t)
A = final amount, p = principal
r = interest rate ; n = number of times Interst is compounded per time period
t = number of time period elapsed
Period = 1 year, 2 months, 25 days since the
Hence, t = 1+(2÷12)+(25÷(30×12))
A = 15000(1 + 0.025 / 12)^(12×1.2361111)
A = 15000(1 + 0.0020833)^14.833333
A = 15000(1.0020833)^14.833333
A = 15000(1.0313515)
A = 15470.273
Hence, Interest equals :
15470.273 - 15,000
= 470.273
