Compound interest help!!! few problems to do :) :D?

mac deweese invested $3500 in a money market fund that pays 8.5% compound quarterly. if he makes no deposits or withdrawals how much money will be in the fund at the end of 6 months?



al grey borrowed $8000 at 9% compound semiannually. when the entire interest and principle are repaid at the end of two years how much will al owe?



a saving account was opened with $4000. the bank pays 5 1/2 % ( five and a half percent) interest, compounded monthly. how much money is in the bank after 4 months?Compound interest help!!! few problems to do :) :D?
Compound interest formula: A = P(1 + r/n)^nt, where P is the principal amount, r is the rate, n is the number of times it is compounded yearly, and t is the amount of years past.



The principal P is 3500. The rate r is 8.5% or 0.085. It is compounded quarterly, so n = 4. The time is 6 months, so t = 0.5 of a year.

A = P(1 + r/n)^nt

A = 3500(1 + 0.085/4)^4(0.5)

A = 3500(1 + 0.02125)^2

A = 3500(1.02125)^2

A = 3,650.33047

about $3,650.33 %26lt;===ANSWER



The principal P is 8000. The rate r is 9% or 0.09. It is compounded semiannually, so n = 2. The time is 2 years, so t = 2.

A = P(1 + r/n)^nt

A = 8000(1 + 0.09/2)^2(2)

A = 8000(1 + 0.045)^4

A = 8000(1.045)^4

A = 9,540.1488

about $9,540.15 %26lt;===ANSWER



The principal P is 4000. The rate r is 5 1/2% or 0.055. It is compounded monthly, so n = 12. The time is 4 months, so t = 4/12 or 1/3.

A = P(1 + r/n)^nt

A = 4000(1 + 0.055/12)^12(4/12)

A = 4000(1 + 0.055/12)^12(1/3)

A = 4000(1 + 0.055/12)^4

A = 4,073.83904

about $4,073.84 %26lt;===ANSWERCompound interest help!!! few problems to do :) :D?
($3500)(1+.085/4)^2 = $3650.33



($8000)(1 + .09/2)^4 = $9540.15



($4000)(1 + .055/12)^4 = $4073.84Compound interest help!!! few problems to do :) :D?
1. $3650.33



2. Well, if he repays everything he will owe nothing. However, he would have paid $9540.15 total.



3. $4073.84