Using the equation B=p(1+r)^n [B, Balance; p, principal deposit; r, rate; n, number of interest periods].
Find the balance when you have $17,500 in the bank at 4.25% compounded annually for 6 years.
I know the answer but not how to do it.
PUT THIS IN YOUR GOOGLE SEARCH WINDOW:
17500(1+.0425)^6
How you do it on your calcualator depends on your calculator.
Yes, I've done that obviously, but I need to show work.
To find the balance using the given equation B = p(1 + r)^n, where B represents the balance, p represents the principal deposit, r represents the interest rate, and n represents the number of interest periods, follow these steps:
Step 1: Identify the given values:
- Principal deposit (p): $17,500
- Annual interest rate (r): 4.25% (convert it to a decimal by dividing by 100, so r = 0.0425)
- Number of interest periods (n): 6 years
Step 2: Substitute the given values into the equation:
B = p(1 + r)^n
B = 17,500(1 + 0.0425)^6
Step 3: Simplify the expression inside the parentheses: (1 + 0.0425)^6 = 1.0425^6
Step 4: Evaluate the expression: 1.0425^6 ≈ 1.2800845 (rounded to 7 decimal places)
Step 5: Multiply the principal deposit by the evaluated expression:
B = 17,500 * 1.2800845
Step 6: Calculate the result:
B ≈ $22,402.48 (rounded to 2 decimal places)
Therefore, the balance after 6 years, when you have $17,500 in the bank at a 4.25% interest rate compounded annually, is approximately $22,402.48.