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1 answer:
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Answer:
$1348.07
Step-by-step explanation:
Hello!
<h3>Compound Interest Formula:- A = Account Balance
- P = Principle/Initial Amount
- r = Rate of Interest (decimal)
- n = Number of times compounded (per year)
- t = Number of Years
- Account Balance = ?
- Principle Amount = $1000
- Rate of Interest = 0.02
Why is the Rate 0.02?
This is because we are gaining money, so the multiplier should be greater than 1. We already added 1, which is 100% so you simply add the 0.02 for the extra 2%.
- Number of times compounded per year = 6
This is because it is being compounded bi-monthly, or once every 2 months. 12 months divided by 2 months is 6 months, so 6 times a year.
- Number of years = 15
Solve by plugging in the given values into the formula.
This is really close to the first option, and since there is rounding involved with the repeating decimal, the first option should be correct.
The answer is $1348.07.