Respuesta :
Answer:
The amount is $23200.08.
The interest is $6300.08.
Step-by-step explanation:
To find : Complete the following using compound future value ?
Solution :
The compound future value formula is given by,
[tex]A=P(1+\frac{r}{n})^{nt}[/tex]
Where, A is the amount (future value)
P is the principal (present value) P=$16,900
r is the annual interest rate r=8%=0.08
n is the number of compounding periods per year n=4
t is the time in years t=4
Substitute the value in the formula,
[tex]A=16900(1+\frac{0.08}{4})^{4\times 4}[/tex]
[tex]A=16900(1+0.02)^{16}[/tex]
[tex]A=16900(1.02)^{16}[/tex]
[tex]A=16900\times 1.37278570509[/tex]
[tex]A=23200.078416[/tex]
Round to nearest cent 23200.078416=23200.08.
The amount is $23200.08.
The interest formula is
[tex]I=A-P[/tex]
Substitute the values,
[tex]I=23200.08-16900[/tex]
[tex]I=6300.08[/tex]
The interest is $6300.08.
