##### hat is the total amount on deposit at the end of 6 years, what is the interset

label Calculus
account_circle Unassigned
schedule 1 Day
account_balance_wallet \$5

Jul 9th, 2015

Thank you for the opportunity to help you with your question! I hope to help you out the best I can!

The question uses compound interest, which the formula is: A = P(1 + r/n)^nt; where A is the amount accumulated, P is the principal amount, r is the interest rate, n is the compounds per period and t is the number of periods. r must be in a decimal (so 8% / 100 = 0.08).

For the first part of the question, we are going to find A.

A = 31,000 (1+ 0.08/1)^(1)(6)

A = 31,000 (1.08)^6

A = 31,000 (1.58687432294)

A = 49,193.10 ; Therefore after 6 years, the total amount is \$49, 193. 10

For the second part of the question, we just subtract A from the P amount (final amount minus initial amount).

Therefore: A - P = r

49, 193.10 - 31, 000 = 18, 193.10

Therefore, the interest earned in the period of time is: \$18, 193.10!

Please let me know if you need any clarification. I'm always happy to answer your questions. Thank you very much!
Jul 9th, 2015

...
Jul 9th, 2015
...
Jul 9th, 2015
Oct 19th, 2017
check_circle
Mark as Final Answer
check_circle
Unmark as Final Answer
check_circle