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3 years ago

I do not understand how they got this answer. I am stuck on the exponent party- Please see attached

Mathematics

1 answer:

Black_prince [1.1K]3 years ago

7 0

Looking at the question, the answer gotten is:$4316.55. The question is related to compound interest.

<h3>What is compound interest?</h3>

Compound interest is known to be the interest that is earned on a principal sum in addition to the accumulated interest previously. It is as a result of reinvesting interest.

To find the compound interest, the formula used is:

A= P(1+r/n)^nt.

Where

P is the principal sum= $3500

r is the rate = 0.035

n is the compounding period = 12 months.

t is the time = 6 years.

Substituting them in the equation, we have:

A = 3500 ( 1 + 0.035/12)^12×6

Working out the one in the bracket and multiplying the exponent, we have:

A = 3500 (1.00291667)^72

Note: We got 72 by multiplying 12 by 6.

1.00291667 raised to the power of 72 = 1.23330133

A = 3500× 1.23330133 = $4,316.55

Ans: $4,316.55

Learn more about compound interest on brainly.com/question/24274034

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