Question

Find A if P = $15, 000, r =0.02, n = 4, and t = 5 in the compound interest formula.

Answer 1

Okay, here we have this:

We need to replace the values in the compound interest formula to find A, so we have the following formula:

$A=P(1+\frac{r}{n})^{nt}$

So, replacing we obtain:

$\begin{gathered} A=15000(1+\frac{0.02}{4})^{4\cdot5} \\ A=15000(1.005)^{20} \\ A\approx16573.43 \end{gathered}$

Finally we obtain that A is aproximately $16573.43.