Answer:
2) $726.65 | 3) $28,668.50
Step-by-step explanation:
You are going to want to use the compound interest formula for these problems:
[tex]A=P(1+\frac{r}{n} )^{nt}[/tex]
P = initial balance
r = interest rate
n = number of times compounded annually
t = time
Lets start with the first question...
First, change 2.5% into its decimal form:
2.5% -> [tex]\frac{2.5}{100}[/tex] -> 0.025
Now lets plug in the values into the equation:
[tex]A=500(1+\frac{0.025}{4})^{15(4)}[/tex]
[tex]A=726.65[/tex]
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Now lets do the second question...
First, change 10% into its decimal form:
10% -> [tex]\frac{10}{100}[/tex] -> 0.1
Next plug in the values into the equation:
[tex]A=2,500(1+\frac{0.1}{2})^{25(2)}[/tex]
[tex]A= 28,668.50[/tex]
