Question

Kelsey deposited $3,600 in a bank account with an annual interest rate of 4.25%. How much

Answer 1

Answer:

so you use the formula:

A = P(1 + r/n)nt

Where:

A = Accrued Amount (principal + interest)

P = Principal Amount

I = Interest Amount

R = Annual Nominal Interest Rate in percent

r = Annual Nominal Interest Rate as a decimal

r = R/100

t = Time Involved in years, 0.5 years is calculated as 6 months, etc.

n = number of compounding periods per unit t; at the END of each period

and you will get:

A = $ 4,432.85

A = P + I where

P (principal) = $ 3,600.00

I (interest) = $ 832.85