calculate the compound interest due in 2and1/2years on 6000at 10 percent compounded annually
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Answer:
1614
Step-by-step explanation:
Given:
- Present value: 6000
- Interest rate: r= 10% = 0.1
- Number of years: t= 2.5
- Number of compounding periods a year: n=1
Use formula:
Future value = Present Value*( 1+ r/n)^nt
- FV = 6000 * ( 1+0.10)^2.5
- FV= 6000 * (1.1)^2.5
- FV = 6000 * 1.2690
- FV= 7614
- Interest amount= 7614-6000= 1614
Answer: interest amount is 1614
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