Answer:
$3087.35
Step-by-step explanation:
Compound interest formula
[tex]\sf A=P(1+\frac{r}{n})^{nt}[/tex]
where:
- A = final amount
- P = principal
- r = interest rate (in decimal form)
- n = number of times interest applied per time period
- t = number of time periods elapsed
Given:
- P = $1500
- r = 6.2% = 0.062
- n = 1
- t = 12 years
Substituting given values into the equation and solving for A:
[tex]\begin{aligned}\sf A & =\sf P \left(1+\frac{r}{n}\right)^{nt}\\\\\implies \sf A & = \sf 1500\left(1+\frac{0.062}{1}\right)^{1 \times 12}\\\\& = \sf 1500(1.062)^{12}\\\\& = \sf \$ 3087.35 \: (nearest\:cent)\end{aligned}[/tex]
