Sam Monte deposits $21,500 into Legal Bank which pays 6 percent interest that is compounded semiannually. By using the table in the handbook, what will Sam have in his account at the end of 6 years?
3 answers
What handbook???
The formula for compound interest is:
A = P(1 + r/n)^(nt), where A is the total amount, P is the principal, t is the time in years, r is the interest rate, and n is how many times a year it is compounded.
A = 21,500(1 + 0.06/2)^(2*6)
Solve from there.
A = P(1 + r/n)^(nt), where A is the total amount, P is the principal, t is the time in years, r is the interest rate, and n is how many times a year it is compounded.
A = 21,500(1 + 0.06/2)^(2*6)
Solve from there.
He borrowed $500 for seven months and paid 53.96 in interest. what was the rate of interest?
4 answers