Check the picture below.
and surely you know how much that is.
and surely you know how much that is.
George rolled four different types of paper into four different cylinders. Identical 10-cm rubber bands were placed around the c
1 answer:
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Answer:
- The total amount accrued, principal plus interest, from compound interest on an original principal of $ 300.00 at a rate of 6% per year compounded 2 times per year over 0.5 years is $ 309.00.
- The total amount accrued, principal plus interest, from compound interest on an original principal of $ 300.00 at a rate of 6% per year compounded 2 times per year over 1 year is $ 318.27.
Step-by-step explanation:
a) How much will you have at the middle of the first year?
Using the formula
where
- Principle = P
- Annual rate = r
- Compound = n
- Time = (t in years)
- A = Total amount
Given:
Principle P = $300
Annual rate r = 6% = 0.06 per year
Compound n = Semi-Annually = 2
Time (t in years) = 0.5 years
To determine:
Total amount = A = ?
Using the formula
substituting the values
$
Therefore, the total amount accrued, principal plus interest, from compound interest on an original principal of $ 300.00 at a rate of 6% per year compounded 2 times per year over 0.5 years is $ 309.00.
Part b) How much at the end of one year?
Using the formula
where
- Principle = P
- Annual rate = r
- Compound = n
- Time = (t in years)
- A = Total amount
Given:
Principle P = $300
Annual rate r = 6% = 0.06 per year
Compound n = Semi-Annually = 2
Time (t in years) = 1 years
To determine:
Total amount = A = ?
so using the formula
so substituting the values
$
Therefore, the total amount accrued, principal plus interest, from compound interest on an original principal of $ 300.00 at a rate of 6% per year compounded 2 times per year over 1 year is $ 318.27.