Question

Solve these compound interest problems and round your answer to the nearest 100th.

Answer 1

Answer:

$2,895.19

Step-by-step explanation:

You are going to want to use the compound interest formula, which is shown below.

$A=P(1+\frac{r}{n} )^{nt}$

P = initial balance

r = interest rate

n = number of times compounded annually

t = time

First, change 8% into its decimal form:

8% -> $\frac{8}{100}$ -> 0.08

Now lets plug in the values into the equation:

$A=1,800(1+\frac{0.08}{4} )^{6(4)}$

$A=2,895.19$

The final amount for this investment is $2,895.19