Find the amount of interest earned on $5,000 at 15% compounded annually for 10 years. (Round your answer to the nearest dollar.)
1 answer:
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The probability is found from a suitable table or probability calculator.
p(z < 1.3) ≈ 0.9031995154
p(z < 1.3) ≈ 0.9031995154
Answer:
A = $44,778.84
A = P + I where
P (principal) = $10,300.00
I (interest) = $34,478.84 or 12 months
Step-by-step explanation:
Given: Yvonne bought a car for $10,300. After 3 years, the value of the car was $6,250. 50%
To find: In approximately what number of additional months will the value of Yvonne’s car be 50% of the price she originally paid?
Formula: ×
Solution: Divide your interest rate by the number of payments you’ll make in the year (interest rates are expressed annually). So, for example, if you’re making monthly payments, divide by 12. Multiply it by the balance of your loan, which for the first payment, will be your whole principal amount.
(This gives you the amount of interest you pay the first month.)
First, convert R as a percent to r as a decimal
r = R/100
r = 50/100
r = 0.5 rate per year,
Then solve the equation for A
A = P(1 + r/n)nt
A = 10,300.00(1 + 0.5/12)(12)(3)
A = 10,300.00(1 + 0.041666667)(36)
A = $44,778.84
Henceforth:
The total amount accrued, principal plus interest, with compound interest on a principal of $10,300.00 at a rate of 50% per year compounded 12 times per year over 3 years is $44,778.84.