Answer:
Step-by-step explanation:
We would apply the formula for determining compound interest which is expressed as
A = P(1 + r/n)^nt
Where
A = total amount in the account at the end of t years
r represents the interest rate.
n represents the periodic interval at which it was compounded.
P represents the principal or initial amount deposited
From the information given,
P = $1500
r = 6% = 6/100 = 0.06
Assuming there are 365 days in a year, then
n = 365 because it was compounded 365 times in a year.
1) For t = 18 months(18/12 = 1.5 years)
Therefore,.
A = 1500(1 + 0.06/365)^365 × 1.5
A = 1500(1.000164)^547.5
A = $1641
2) For t = 33 months(33/12 = 2.75 years)
Therefore,.
A = 1500(1 + 0.06/365)^365 × 2.75
A = 1500(1.000164)^1003.75
A = $1768.5
3) For t = 110.4 months(110.4/12 = 9.2 years)
Therefore,
A = 1500(1 + 0.06/365)^365 × 9.2
A = 1500(1.000164)^3358
A = $2601
