Asked by Anonymous
Kelsey deposited $3,600 in a bank account with an annual interest rate of 4.25%. How much interest was earned in 5 years?
Answers
Answered by
Anonymous
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
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
There are no AI answers yet. The ability to request AI answers is coming soon!
Submit Your Answer
We prioritize human answers over AI answers.
If you are human, and you can answer this question, please submit your answer.