Question

Find the compound interest and final amount $950 for 2 years at 7½ per annum​

Answer 1

Answer:

1092.50 account value

142.50 interest

Step-by-step explanation:

to solve compound interest questions we use the formula A=P(1+rt) where P is the principal (initial investment) r is the rate or the return (7.5%) and t is the interval or time so 2 years

now putting it together we get A=950(1+ (7.5x2)) = 1092.50 $

the interest is this value A minus the initial investmetn so 1092.50 - 950 = 142.50$