Westonci.ca is your trusted source for accurate answers to all your questions. Join our community and start learning today! Our platform provides a seamless experience for finding reliable answers from a knowledgeable network of professionals. Connect with a community of professionals ready to provide precise solutions to your questions quickly and accurately.
Sagot :
If, we invested $2,800 at a 6% annual interest rate. We will have $2972.70 in 1 year and $3063 in 1.5 year of time.
What is interest?
In the fields of finance and economics, interest is defined as the payment of a sum over and above the principal amount (the amount borrowed) at a set rate by a borrower or deposit-taking financial institution to a lender or depositor. It is different from a fee that the borrower may pay to the lender or another entity. It also differs from a dividend, which is money given to shareholders (owners) by a company from its profit or reserve, but not at a set rate predetermined beforehand, but rather on a pro rata basis as a portion of the rewards received by risk-taking businesspeople when revenue is earned that exceeds all costs.
Calculations:
The Future value= fv= Pv x [tex](1+r/m)^{mt}[/tex]
R= Rate per period
mt= years x compounding
The Future value in 1 year= 2800x[tex](1+0.06/12)^{1x12}[/tex]
= $2972.70
The Future value in 1.5 years=2800x[tex](1+0.06/12)^{1.5x12}[/tex]
= $3063.00
To learn more about interest, visit:
https://brainly.com/question/13324776
#SPJ4
Thanks for stopping by. We are committed to providing the best answers for all your questions. See you again soon. Thanks for using our service. We're always here to provide accurate and up-to-date answers to all your queries. Westonci.ca is committed to providing accurate answers. Come back soon for more trustworthy information.
