Question

Using the expression below, choose the correct answers for the new balance and amount of interest earned in the following compound interest problem.

P(1 + r)n

$1,100 at 8%, for 15 years, compounded annually.

Total Amount = $
Interest Amount = $

Answer 1

halp

Answer 2

Patience, I am typing 😂

P = principal amount (which you are given as $1,100, or \(1100\))
r = rate (you're given 8%, which in decimal form would be \(0.08\))
n = 15 years, and since this is compounded annually you just plug it in as \(15\)

As a result your equation should be:\[P(1+r)n\rightarrow1100(1+0.08)(15)\]

Answer 3

Although I'm pretty sure I have never seen that form of equation before, I might be rusty when it comes to calculating interest rates... 🤔

Answer 4

Ah, it's a simplified version of the original formula since your interest is compounded annually. Apologies

Answer 5

thank you!

Answer 6

do you know what the letters stand for?

Answer 7

P1rn?

Answer 8

yes

Answer 9

Hopefully that image helps!

Answer 10

then we can start filling the blanks with p1rn

Answer 11

what does what stand for?

Answer 12

P principal
R is rate
n is time
i is interest

Answer 13

so we have the rate which is 8%

Answer 14

yes

Answer 15

k

Answer 16

i will let you finish the rest

Answer 17

i got da answer

Answer 18

but thx

Answer 19

good job

Answer 20

thanks

Answer 21

*standing ovation*

Answer 22

was that for total amount or interest

Answer 23

i am confusion

Answer 24

oh nuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuu

Answer 25

When you calculate this 1100(1+0.08)(15)
You get your total amount

Answer 26

its not an answer for my choices