Answer:
a) $500 + $525 = $ 1,025
b) $420 + $642 = $ 1,062
c) $210 + $856 = $ 1,066
d) $840 + $214 = $ 1,056
Step-by-step explanation:
Compound Interest Equation
A = P(1 + r/n)^nt
Where:
A = Accrued Amount (principal + interest)
P = Principal Amount
I = Interest Amount
R = Annual Nominal Interest Rate in percent
r = Annual Nominal Interest Rate as a decimal
r = R/100
t = Time Involved in years, 0.5 years is calculated as 6 months, etc.
n = number of compounding periods per unit t; at the END of each period
Compound Interest Formulas and Calculations:
Calculate Accrued Amount (Principal + Interest)
A = P(1 + r/n)^nt
Calculate Principal Amount, solve for P
P = A / (1 + r/n)^nt
Calculate rate of interest in decimal, solve for r
r = n[(A/P)^1/nt - 1]
Calculate rate of interest in percent
R = r * 100
Calculate time, solve for t
t = ln(A/P) / n[ln(1 + r/n)] = [ ln(A) - ln(P) ] / n[ln(1 + r/n)]
