Help me with this please
1 answer:
Answer:
$2,459.21
Step-by-step explanation:
(see attached for reference)
recall that the formula for compound interest is:
A = P [ 1 + (r/n)^ (nt) ]
where,
A = Final amount ( we are asked to find this)
P = principal amount = given as $2,340
r = Annual Interest Rate = given as 5% = 0.05
n = number of times compounded in a year = 4 (compounded quarterly)
t= time = 1 year
Substituting the values into the equation,
A = P [ 1 + (r/n)^ (nt) ]
A = 2,340 [ 1 + (0.05/4)^ (4·1) ]
A = $2,459.21
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Answer:
the interest earned= 93.401
and the future value of an annuity= 493.401
Step-by-step explanation:
Given Data:
Interest rate= 7%
time,t = 3 years
weekly payment, P= 400
At the end of 3 years, final investment A= ?
n= 52 as it is weekly
As per the interest formula
A= P(1+r/n)^nt
Putting value in above equation
=
= 493.401
Interest earned = A-P
= 493.401-400
= 93.401 !