i need help i need to find the balance in each compound interest account:
$1400 after 3 years at 5.5%
i got:
B= P (1 + r) t
=1400 (1 + .055)3
I am stuck and don't know how to do this
#2 $1800 after 11 years @ 6.0%
#3 $900 after 10 years @ 4.62%
#4 $2500 after 50 years @ 2.2%
B= P (1 + r)^t
The t is an exponent.
1400 (1 + .055)^3 = $1643.94
This assumes annual compounding. Most accounts compound more frequently
cats, lots of cats
and louis tomolinson
To find the balance in each compound interest account, you can use the formula for compound interest:
B = P(1 + r/n)^(nt)
Where:
B = Balance
P = Principal amount
r = Annual interest rate (in decimal form)
n = Number of times interest is compounded per year
t = Number of years
Let's calculate the balance for each scenario:
#1:
Principal (P) = $1400
Annual interest rate (r) = 5.5% = 0.055 (in decimal form)
Number of years (t) = 3
Using the formula:
B = 1400(1 + 0.055)^3
To calculate this, first add 1 to the interest rate:
1 + 0.055 = 1.055
Then, take this value to the power of the number of years:
1.055^3 ≈ 1.166745
Finally, multiply the principal amount by the result:
B ≈ 1400 * 1.166745
B ≈ $1633.43
Therefore, the balance in the compound interest account after 3 years at 5.5% would be approximately $1633.43.
Now let's work on the other scenarios.
#2:
Principal (P) = $1800
Annual interest rate (r) = 6.0% = 0.06 (in decimal form)
Number of years (t) = 11
Using the formula:
B = 1800(1 + 0.06)^11
Perform the calculations in a similar way as described for #1.
#3:
Principal (P) = $900
Annual interest rate (r) = 4.62% = 0.0462 (in decimal form)
Number of years (t) = 10
Using the formula:
B = 900(1 + 0.0462)^10
Again, perform the calculations as previously described.
#4:
Principal (P) = $2500
Annual interest rate (r) = 2.2% = 0.022 (in decimal form)
Number of years (t) = 50
Using the formula:
B = 2500(1 + 0.022)^50
Compute the result using the procedure given above.
By using the compound interest formula with the provided values, you'll be able to calculate the balance in each compound interest account.