Question

Suppose that $2500 is invested at a compound interest rate of 7% quarterly. How much money will have accumulated at the end of

A) 3/4 of the year

B) 15 years

Remember the formula of compound interest is shown in the photo

Answer 1

A)

How much money will have accumulated at the end of

=P*(1+(r/m))^(m*t)

=2500*(1+(7%/4))^(4*0.75)

=2633.56

B)

How much money will have accumulated at the end of

=P*(1+(r/m))^(m*t)

=2500*(1+(7%/4))^(4*15)

=7079.54

the above is answer..