Answer:
P = 300
r = 0.15
n = 12
A(t) = 300(1.0125)^12t
Step-by-step explanation:
Given that:
Total credit taken for book purchase = $300
Annual Interest rate = 15% compounded monthly
Time or period = 4 years
P(1 + r/n)^nt
P in the expression above means the principal amount which is the total credit spent on book purchase = $300
r = annual interest rate on Emma's account = 15% = 15/100 = 0.15
n = number of compounding times per period ; loan which compounds monthly = number of months in a year = 12
Hence,
P = $300 ; r = 0.15 ; n = 12
Substituting into the equation :
P(1 + r/n)^nt
Simplified expression written in terms of t:
Final amount, A after t years
A(t) = 300(1 + 0.15/12)^12t
A(t) = 300(1 + 0.0125)^12t
A(t) = 300(1.0125)^12t
