Answer:
Future value, A = $8444.16
Step-by-step explanation:
Given the following data;
Principal = $3,600
Time = 2 years
Number of times = 24
Interest rate = 0.43 %
To find the future value, we would use the compound interest formula;
[tex] A = P(1 + \frac{r}{n})^{nt}[/tex]
Where;
- A is the future value.
- P is the principal or starting amount.
- r is annual interest rate.
- n is the number of times the interest is compounded in a year.
- t is the number of years for the compound interest.
Substituting into the equation, we have;
[tex] A = 3600(1 + \frac{0.43}{24})^{24*2}[/tex]
[tex] A = 3600(1 + 0.01792)^{48}[/tex]
[tex] A = 3600(1.01792)^{48}[/tex]
[tex] A = 3600(2.3456)[/tex]
Future value, A = $8444.16
