Answer:
a) Amount saved if the interest is compounded annually is $5832
b) Amount saved if the interest is compounded semi-annually is $5849.5
Step-by-step explanation:
Principal Amount P = 5000
Time t = 10 years
Annual interest i = 8% = 0.08
We need to find amount saved if interest is compounded a) annually b) semi-annually
a) Amount saved if the interest is compounded annually
If interest compounded annually, n= 1
Using Formula: ![A=P(1+\frac{r}{n})^{nt}](https://tex.z-dn.net/?f=A%3DP%281%2B%5Cfrac%7Br%7D%7Bn%7D%29%5E%7Bnt%7D)
Putting values:
![A=P(1+\frac{r}{n})^{nt} \\A=5000(1+\frac{0.08}{1})^{1*2}\\A=5000(1+0.08)^2\\A=5000(1.08)^2\\A=5000(1.1664)\\A=5832](https://tex.z-dn.net/?f=A%3DP%281%2B%5Cfrac%7Br%7D%7Bn%7D%29%5E%7Bnt%7D%20%5C%5CA%3D5000%281%2B%5Cfrac%7B0.08%7D%7B1%7D%29%5E%7B1%2A2%7D%5C%5CA%3D5000%281%2B0.08%29%5E2%5C%5CA%3D5000%281.08%29%5E2%5C%5CA%3D5000%281.1664%29%5C%5CA%3D5832)
So, Amount saved if the interest is compounded annually is $5832
b) Amount saved if the interest is compounded semi-annually
If interest compounded semi-annually, n= 2
Using Formula: ![A=P(1+\frac{r}{n})^{nt}](https://tex.z-dn.net/?f=A%3DP%281%2B%5Cfrac%7Br%7D%7Bn%7D%29%5E%7Bnt%7D)
Putting values:
![A=P(1+\frac{r}{n})^{nt} \\A=5000(1+\frac{0.08}{2})^{2*2}\\A=5000(1+0.04)^4\\A=5000(1.04)^4\\A=5000(1.1699)\\A=5849.5](https://tex.z-dn.net/?f=A%3DP%281%2B%5Cfrac%7Br%7D%7Bn%7D%29%5E%7Bnt%7D%20%5C%5CA%3D5000%281%2B%5Cfrac%7B0.08%7D%7B2%7D%29%5E%7B2%2A2%7D%5C%5CA%3D5000%281%2B0.04%29%5E4%5C%5CA%3D5000%281.04%29%5E4%5C%5CA%3D5000%281.1699%29%5C%5CA%3D5849.5)
So, Amount saved if the interest is compounded semi-annually is $5849.5
Answer:
s = 18
Step-by-step explanation:
Answer:
$97.20
Step-by-step explanation:
97.20 x 0.15 = 14.58
Multiply the total by 15 percent, giving you the $14.58 tip, proving it to be correct.