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September 21, 2014

September 21, 2014

Posted by **katie** on Friday, September 2, 2011 at 4:48pm.

so I figure you would get 2650.00 help please

- math -
**MathMate**, Friday, September 2, 2011 at 6:26pmWhat you probably did was calculated

*simple*interest for 15 years on $1000 and added to $2200 to give $2650.

Compound interest formula are based on the number of*periods*, n, the interest was compounded.

The interest being compounded 4 times a year, so there are 15*4=60 periods of 3 months each. The corresponding interest rate for*each*period is therefore r = 3%/4=0.0075.

The formula for the future value using compound interest is:

FV = Principal * (1+r)^n

=2200*1.0075^60

=2200*1.565681

=$3444.50

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