OpenStudy (anonymous):

How would i solve this... Louis opened a savings account 15 years with a deposit of \$2,705.76. The account has an interest rate of 3.9% compounded twice a year. How much interest has Louis earned? what would the formula look like? and what is the number for "twice a year"?

6 years ago
Parth (parthkohli):

Well if it's like half years, then 15 years = 30 half years.

6 years ago
Parth (parthkohli):

Do you know the formula for continuous compounding?

6 years ago
OpenStudy (anonymous):

no

6 years ago
Parth (parthkohli):

It's something like if you're compounding 5% of 100 every year, then you'll have: $$\Large \color{MidnightBlue}{\Rightarrow 100(1 + 5\%)^{years} }$$

6 years ago
OpenStudy (anonymous):

so P(1+R/2)^2*15?

6 years ago
Parth (parthkohli):

If you want to see the interest, then you will have to subtract the principal from the amount.

6 years ago
Parth (parthkohli):

And no.

6 years ago
Parth (parthkohli):

$$\Large \color{MidnightBlue}{\Rightarrow 2,705.76(1 + 3.9\%)^{30} }$$

6 years ago
Parth (parthkohli):

Remember that I put 30 because of half years

6 years ago
OpenStudy (anonymous):

OK I GOT IT THANKS

6 years ago