Question 984666: Using the expression below, choose the correct answers for the new balance and amount of interest earned in the following compound interest problem.
P(1 + r)n
$1,100 at 8%, for 15 years, compounded annually.
Total Amount = $
Interest Amount = $
Answer by Boreal(15235)   (Show Source):
You can put this solution on YOUR website! P=Po{1+r)^n
P=1100(1+0.08)^15
(1.08^15)=3.172. Without rounding on the calculator, multiply that by $1100.
$3489.39; INTEREST IS FOUND BY SUBTRACTING ORIGINAL PRINCIPAL AND IS $2389.39
Rule of 72 works for continuous compounding, but it is a guide here. The money should double in 9 years and quadruple in 18. This is 15 years, and it has trebled plus more.
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