Answer:
Given: The principal amount (P) = $ 105.00, rate of interest(r) = 8% and t= 25 years and number of times interest compounded per year (n) =4.
Use formula to find the final amount i.e,
[tex]A =P(1+\frac{r}{100n})^{nt}[/tex] ......[1] ; where r is the rate of interest , n is the number of times interest compounded per year and P is the Principal.
Now, substitute the given values of P , r, n and t in [1] we get;
[tex]A = 105 \times (1+\frac{8}{100 \times 4})^{4\times 25}[/tex]
or
[tex]A =105 \times (1+\frac{8}{400})^{100}[/tex]
Simplify:
A = $ 760.687842416
therefore, the final amount is $ 760.68 (approx.)
