Question

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

Answer 1

Answer:

$2,226.96

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 10% into its decimal form:

10% -> $\frac{10}{100}$ -> 0.1

Now lets plug in the values into the equation:

$A=500(1+\frac{0.1}{12})^{15(12)}$

$A=2,226.96$

The final amount after 15 years is $2,226.96