SOLUTION: Can someone please help me with this problem: Find the compound interest earned by the deposit. Round to the nearest cent. $15,000 at 4% compounded quarterly for 1/2 year

Algebra ->  Equations -> SOLUTION: Can someone please help me with this problem: Find the compound interest earned by the deposit. Round to the nearest cent. $15,000 at 4% compounded quarterly for 1/2 year      Log On


   

Question 203889: Can someone please help me with this problem:
Find the compound interest earned by the deposit. Round to the nearest cent.
$15,000 at 4% compounded quarterly for 1/2 year
Answer by jojo14344(1513) About Me  (Show Source):
You can put this solution on YOUR website!


Given:system%28P=15000%2Ci=0.04%2Cn=0.50yr%2Cm=4=quarterly%29

Let us find first the Future Value:
Working Eqn: F=P%281%2Bi%2Fm%29%5E%28mn%29
F=15000%281%2B0.04%2F4%29%5E%284%2A0.50%29=15000%281%2B0.01%29%5E2=15000%281.01%29%5E2
red%28F=15301.50%29

So the compounded interest earned:
= F - P
= $15,301.50 - $15,000
= $301.50 (Answer)

Thank you,
Jojo