Question

What amount of money will grow to $71,200 in 2 years and 9 months at the interest rate of 6.41% p.a.? compound interestI already solved the problem but I want to see if I’m correct

Answer 1

Explanation:

We will use the compound interst formula below

$A=P(1+\frac{r}{n})^{nt}$

Where,

$\begin{gathered} A=71200 \\ r=\frac{6.41}{100}=0.0641 \\ t=2\frac{9}{12}=2.75years \end{gathered}$

By substituting the values, we will have

$\begin{gathered} A=P(1+\frac{r}{n})^{nt} \\ 71200=P(1+0.0641)^{2.75} \\ 71200=P(1.0641)^{2.75} \\ P=\frac{71200}{(1.0641)^{2.75}} \\ P=60.017.55 \end{gathered}$

Hence,

The final answer is

$\text{ \ }60.017.55$