Question

Use compound interest to find the ending balance

Answer 1

Year 1, compounding time #1
Current principal is $7500.00Interest earned on $7500.00 is $7500.00 × 0.06 = 450.00This makes your new pricipal $7500.00 + $450.00 = $7950.00Year 2, compounding time #1
Current principal is $7950.00Interest earned on $7950.00 is $7950.00 × 0.06 = 477.00This makes your new pricipal $7950.00 + $477.00 = $8427.00Year 3, compounding time #1
Current principal is $8427.00Interest earned on $8427.00 is $8427.00 × 0.06 = 505.62This makes your new pricipal $8427.00 + $505.62 = $8932.62Year 4, compounding time #1
Current principal is $8932.62Interest earned on $8932.62 is $8932.62 × 0.06 = 535.96This makes your new pricipal $8932.62 + $535.96 = $9468.58Year 5, compounding time #1
Current principal is $9468.58Interest earned on $9468.58 is $9468.58 × 0.06 = 568.11This makes your new pricipal $9468.58 + $568.11 = $10036.69Year 6, compounding time #1
Current principal is $10036.69Interest earned on $10036.69 is $10036.69 × 0.06 = 602.20This makes your new pricipal $10036.69 + $602.20 = $10638.89Year 7, compounding time #1
Current principal is $10638.89Interest earned on $10638.89 is $10638.89 × 0.06 = 638.33This makes your new pricipal $10638.89 + $638.33 = $11277.23Year 8, compounding time #1
Current principal is $11277.23Interest earned on $11277.23 is $11277.23 × 0.06 = 676.63This makes your new pricipal $11277.23 + $676.63 = $11953.86Year 9, compounding time #1
Current principal is $11953.86Interest earned on $11953.86 is $11953.86 × 0.06 = 717.23This makes your new pricipal $11953.86 + $717.23 = $12671.09Year 10, compounding time #1
Current principal is $12671.09Interest earned on $12671.09 is $12671.09 × 0.06 = 760.27This makes your new pricipal $12671.09 + $760.27 = $13431.36Year 11, compounding time #1
Current principal is $13431.36Interest earned on $13431.36 is $13431.36 × 0.06 = 805.88This makes your new pricipal $13431.36 + $805.88 = $14237.24Year 12, compounding time #1
Current principal is $14237.24Interest earned on $14237.24 is $14237.24 × 0.06 = 854.23This makes your new pricipal $14237.24 + $854.23 = $15091.47Year 13, compounding time #1
Current principal is $15091.47Interest earned on $15091.47 is $15091.47 × 0.06 = 905.49This makes your new pricipal $15091.47 + $905.49 = $15996.96Year 14, compounding time #1
Current principal is $15996.96Interest earned on $15996.96 is $15996.96 × 0.06 = 959.82This makes your new pricipal $15996.96 + $959.82 = $16956.78Year 15, compounding time #1
Current principal is $16956.78Interest earned on $16956.78 is $16956.78 × 0.06 = 1017.41This makes your new pricipal $16956.78 + $1017.41 = $17974.19

In the end, $7500 has turned into $17974.19.You have made $10474.19