Question 1175023


 The formula for compound interest is :

{{{A=P(1+r/n)^(nt)}}}

given:

{{{P=4500}}}	
{{{R=6.5}}}% =>{{{r=0.065}}}
{{{n=12}}}	(monthly)
{{{t=4}}} years


A. Find how much money there will be in the account after the given number of years.

{{{A=4500(1+0.065/12)^(12*4)}}}

{{{A=4500(1+0.005416666666666667)^48}}}

{{{A=4500(1.005416666666666667)^48}}}

{{{A=4500*1.296020435413509416}}}

{{{A=5832.09}}}


B. Find the interest earned.

{{{I=A-P}}}

{{{I=5832.09-4500}}}

{{{I=1332.09}}}