Welcome to Westonci.ca, the Q&A platform where your questions are met with detailed answers from experienced experts. Discover detailed answers to your questions from a wide network of experts on our comprehensive Q&A platform. Explore comprehensive solutions to your questions from knowledgeable professionals across various fields on our platform.
Sagot :
Given:
Principal, P = $895
Time, t = 11 years
Rate, r = 2% compounded annually.
Let's find the compound interest and the future value.
To find the future value apply the formula:
[tex]A=P(1+r)^t[/tex]Where:
A is the future amount.
P is the principal = 895
r is the rate = 2% = 0.02
t is the time in years = 11
Hence, we have:
[tex]\begin{gathered} A=895(1+0.02)^{11} \\ \\ A=895(1.02)^{11} \\ \\ A=895(1.2433743) \\ \\ A=1112.82 \end{gathered}[/tex]Therefore, the future value is $1112.82
To find the compound interest, substitute the principlal (P) from the future value (A).
Compound interest = $1112.82 - $895
= $217.82
The compound interest is $217.82
A
Thank you for your visit. We are dedicated to helping you find the information you need, whenever you need it. Your visit means a lot to us. Don't hesitate to return for more reliable answers to any questions you may have. Thank you for visiting Westonci.ca, your go-to source for reliable answers. Come back soon for more expert insights.
