Answer:
The amount is $8358.7 and the interest is $3858.7.
Step-by-step explination
STEP 1: To find amount we use formula:
A = P
1 +
r
n
n·t
A = total amount P = principal or amount of money deposited, r = annual interest rate n
= number of times compounded per year t = time in years In this example we have
P = $4500 , r = 7% , n = 2 and t = 9 years
After plugging the given information we have
A = 4500
1 +
0.07
2
2·9
A = 4500 · 1.03518
A = 4500 · 1.857489
A = 8358.7
STEP 2: To find interest we use formula A = P + I, since A = $8358.7 and P = $4500 we
have:
A = P + I
8358.7 = 4500 + I
I = 8358.7 − 4500
I = 3858.7
