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*Find the compound amount for each deposit and the amount of interest earned Ex22 15ooo$ at 6% compounded monthly for 10 years The principle is P=$15000 The interest rate per month is i=r/12=0.06/12 The number of years is t=10 so the future value is A=P(1+r/n)^n.t= 15000(1+0.06/12)^12.10= 27290.95$ With n is number payment period of the year GENERAL FOMULAR I=A-P SIMPLE INT: I=Prt A=P(1+rt) COMPOUND INT: A=P(1+i)^m=P(1+r/n)^nt with m=n.t *Find the interest rate for the given deposit and compound amount $8000 accumulating to $1167212 compounded quarterly for 8 yrs We have P=$8000,A=$1167212, n=4,t=8 Since A=P(1+r/n)^nt We have by taking the logarithm both sides, lnA=lnP+nt.ln(1+r/n) ln(1+r/n)= (lnA-lnP)/nt=…show more content…
Here P=$3125, r=2,85%=0,0285 and t = 7 months=7/12 The interest earned is I=Prt=3125.0,0285.7/12=$51,95 The future value is
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