Question

I need help solving B and C can someone help me

Answer 1

Given data-

The principle is 15000$

The interest is 4%

The number of years is 4 years.

To find-

b) Compound interest monthly

c) Compound interest annually

Explanation-

To solve the problem, we have to use the formula to find the amount. Then we can find the answer.

Formula-

The formula we need is

$A=P(+\frac{r}{100})^n$

Here-

$\begin{gathered} A-Amount \\ P-Principle \\ r-Rate \\ n-Time \end{gathered}$

Solution-

b)

The total number of years is 4 years.

The interest is compounded monthly.

So, the value of n is

$\begin{gathered} \frac{1}{12}\times4 \\ =\frac{1}{3} \end{gathered}$

Now, using the formula, we get

$\begin{gathered} A=p(1+\frac{r}{100})^n \\ =15000(1+\frac{4}{100})^{\frac{1}{3}} \\ =15000\times(\frac{100+4}{100})^{\frac{1}{3}} \\ =15000\times(\frac{104}{100})^{\frac{1}{3}} \\ =15197.39 \end{gathered}$

So, the amount is 15197.39 $

c)

The interest is calculated yearly

So, the value of n is 4

Now, using the formula, we get

$\begin{gathered} A=P(1+\frac{r}{100})^n \\ =15000(1+\frac{4}{100})^4 \\ =15000(\frac{100+4}{100})^4 \\ =15000(\frac{104}{100})^4 \\ =15000\times\frac{104}{100}\times\frac{104}{100}\times\frac{104}{100}\times\frac{104}{100} \\ =17547.87 \end{gathered}$

So, the amount is 17547.87 $

Answer-

The answer for b) is 15197.39 $ and c) is 17547.87 $