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2 years ago

11

Business

1 answer:

sdas [7]2 years ago

4 0

Answer and Explanation:

The computation is shown below:

a. The amount in 2 years later is

As we know that

Amount = Principal × (1 + rate)^time period

= $10,675.50 × (1 + 6.5% ÷ 2)^2× 2

= $10,675.50 × (1 + 0.03125)^4

= $10,675.50 × 1.130982

= $12,073.80

b. Now the compound interest is

= Final Amount - principal amount

= $12,073.80 - $10,675.50

= $1,398.30

The above formulas should be applied

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