Welcome to Westonci.ca, your one-stop destination for finding answers to all your questions. Join our expert community now! Our Q&A platform offers a seamless experience for finding reliable answers from experts in various disciplines. Discover detailed answers to your questions from a wide network of experts on our comprehensive Q&A platform.
Sagot :
Answer:
$25
Explanation:
The compound interest formula gives
[tex]A=P(1+\frac{r}{n})^{nt}[/tex]where
A = final balance
P = principle amount
r = interest rate /100
n = # of compounds applied per interval
t = # of intervals
The interest earned, therefore, is the difference of the final balance and principle.
[tex]A-P[/tex][tex]=P(1+\frac{r}{n})^{nt}-P[/tex]Now in our case.
P = $2500
r = 1 / 100
n = 1 ( 1 year = 12 months )
t = 1 ( 12 months = 1 year )
Therefore, our formula gives
[tex]2500(1+\frac{0.01}{1})^1-2500[/tex]which simplifies to give
[tex]\begin{gathered} 2500(1+0.01)^{}-2500 \\ =\$25 \end{gathered}[/tex]This tells us that the interest earned is $25.
We appreciate your time on our site. Don't hesitate to return whenever you have more questions or need further clarification. We appreciate your visit. Our platform is always here to offer accurate and reliable answers. Return anytime. We're dedicated to helping you find the answers you need at Westonci.ca. Don't hesitate to return for more.
