Question

Can you solve this equation (decimals go up to 2 digits)

Answer 1

Give:

There are give that the principle amout is $1000.

Explanation:

Accordig to the question:

We need to find the actual amount.

So,

From the formula of compound interest quarterly.

$A=P[1+(\frac{r}{4})^{4t}]-P$

Where,

$\begin{gathered} P=1000 \\ r=6\%=0.06 \\ t=10 \end{gathered}$

Then,

Put all the above values into the given formula:

So,

$\begin{gathered} A=P[1+(\frac{r}{4})^{4t}]-P \\ A=1000[1+(\frac{0.06}{4})^{4(10)}]-1000 \end{gathered}$

Then,

$\begin{gathered} A=1000[1+(\frac{0.06}{4})^{4(10)}]-1000 \\ A=1000[1+(\frac{0.06}{4})^{40}]-1000 \\ A=1000[1+(0.015)^{40}]-1000 \\ A=1814.02-100 \\ A=814.02 \end{gathered}$

Final answer:

Hence, the amount is $814.02.