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Sagot :
Explanation:
The principal is given below as
[tex]P=7185.81[/tex]The APR is given below as
[tex]r=2.5\%=\frac{2.5}{100}=0.025[/tex]Concept:
To figure out the the compund interest, we will use the formula below
[tex]A=P(1+\frac{r}{n})^{nt}[/tex]For one year, we will have the amount be
[tex]\begin{gathered} A=P(1+\frac{r}{n})^{nt} \\ n=12,t=1 \end{gathered}[/tex]By substituting the values, we would have
[tex]\begin{gathered} A=P(1+\frac{r}{n})^{nt} \\ A=7185.51(1+\frac{0.025}{12})^{1\times12} \\ A=7,185.51(1+\frac{0.025}{12})^{12} \\ A=7367.22 \end{gathered}[/tex]Hence,
The amount ave after 1 year will be
[tex]A=7,367.22[/tex]To calculate the amount for three years, we will have
[tex]\begin{gathered} A=P(1+\frac{r}{n})^{nt} \\ n=12,t=3 \\ \end{gathered}[/tex]By substituting the values, we will have
[tex]\begin{gathered} A=P(1+\frac{r}{n})^{nt} \\ A=7185.51(1+\frac{0.025}{12})^{3\times12} \\ A=7,185.51(1+\frac{0.025}{12})^{36} \\ A=7744.54 \end{gathered}[/tex]Hence,
The amount ave after 3 years will be
[tex]\begin{equation*} 7744.54 \end{equation*}[/tex]
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