Answer:
1950
Step-by-step explanation:
p: 1500
r: 0.06
n: 1
t: 5
1500(1+ 0.06/1)^5
1500(1.06)^5
1500×1.3
1950
The correct answer is: $2007.3
The formula for yearly compounding is A = P(1 + [tex]\frac{r}{100}[/tex])^t
A = Accumulated or final amount
P = Principal ($1500)
r = interest rate as a decimal (0.06)
t = time (5 years)
A = 1500×(1 + 0.06)^5
compound interests is calculated by multiplying the initial loan amount, or principal, by the one plus the annual interest rate raised to the number of compound periods minus one. This will leave you with the total sum of the loan including compound interest.
Learn more about compound interests here: https://brainly.com/question/24924853
# SPJ2
