1. P = 5000 [principal amount]
r = 9% or 0.09 [annual rate]
t = 3 [number of years the amount is deposited]
A = ? [amount of money accumulated]
A = P (1 + r)^t
A = (5000)[(1 + 0.09)^3]
A = (5000)[(1.09^3)]
A = (5000)(1.295029)
A = 6475.145 ~ P 6 475.15
2. P = 10 000
r = 7% or 0.07
t = 3
n = 2 [number of times the interest is compounded per year]
A = ?
A = P (1 + r/n)^(nt)
A = (10 000)[(1 + 0.07/2)^(2*3)]
A = (10 000)[(1 + 0.035)^6]
A = (10 000)[(1.035)^6]
A = (10 000)(1.229255326)
A = 12 292.55326 ~ P 12 292.55
Is it?
