Basic College Mathematics (9th Edition)

Published by Pearson
ISBN 10: 0321825535
ISBN 13: 978-0-32182-553-7

Chapter 6 - Percent - 6.8 Compound Interest - 6.8 Exercises - Page 455: 4

Answer

Year 1 total: $1575.00$ Year 2 total: $1653.75$ Year 3 total: $1736.44$

Work Step by Step

Year 1: $1500\times.05\times1 = 75$ add principal amount: $1575.00$ Year 2: $1575\times.05\times1 = 78.75$ add principal amount: $1653.75$ Year 3: $1653.75\times.05\times1 = 82.69$ add principal amount: $1736.44$
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