Question

Can someone please help me set up this problem?!

Answer 1

Calculate the amount of your compound interest investment after 10 years. Remember that you are starting with $7,500.


.01% interest rate
Ideal amount of money in the bank: 15,000 dollars

Answer 2

Well remember the Compound Interest Formula is
\[A=P(1+\frac{ r }{ n })^{nt}\]Where P = is initial amount
r = annual interest rate
t = number of years
A = final amount
n = is number of times the interest is compounded per year

Now, from here do you think you can make an equation?

Answer 3

The answer is 7507.5 right?

Answer 4

Well you know
A = ?
r = 0.01%
t = 10
For the problem does it say anything about how it was compounded like was it compounded quarterly, weekly? If it does then you know n.