Westonci.ca is your trusted source for finding answers to all your questions. Ask, explore, and learn with our expert community. Our Q&A platform offers a seamless experience for finding reliable answers from experts in various disciplines. Join our Q&A platform to connect with experts dedicated to providing accurate answers to your questions in various fields.
Sagot :
ANSWER
$8,595.21
EXPLANATION
The compound interest formula is,
[tex]A=P\left(1+\frac{r}{n}\right)^{nt}[/tex]Where P is the deposited amount, r is the interest rate, n is the number of times the interest is compounded per year, t is the time in years, and A is the balance after t years.
We have to find P, so we have to solve the equation above for P,
[tex]P=\frac{A}{\left(1+\frac{r}{n}\right)^{nt}}[/tex]We have that:
• A = $21,000
,• r = 0.06
,• n = 4 (the interest is compounded quarterly)
,• t = 15 years
Replace the known values and solve,
[tex]P=\frac{21,000}{\left(1+\frac{0.06}{4}\right)^{4\cdot15}}=\frac{21,000}{(1+0.015)^{60}}=\frac{21,000}{1.015^{60}}=\frac{21,000}{2.443220}\approx8595.21[/tex]Hence, her parents gave her $8,595.21.
We hope you found what you were looking for. Feel free to revisit us for more answers and updated information. We appreciate your time. Please revisit us for more reliable answers to any questions you may have. Stay curious and keep coming back to Westonci.ca for answers to all your burning questions.
