The Bishop family celebrated a birthday by dining out at a local restaurant. Their bill was $97.45. Mr. Bishop would like to lea
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Given:
Principal = $3,500
Rate of interest = 7% compounded quarterly (4 times in an year)
Time = 6 years
To find:
The amount.
Solution:
The formula for the amount is
Where, P is principal, r is rate of interest, n is number of times interest compounded in an year and t is number of years.
Putting P=3500, r=0.07, n=4 and t=6 in the above formula, we get
Therefore, the amount after 6 years is $5307.55.
