Question #38cca

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Answer 1 · 2017-03-23T21:53:25

$P~~$8848.59$ to 2 decimal places

Annual interest is $1.5/100$ split this into quarterly then it is $1.5/400$ interest for each quarter. As $4xx1.5/400=1.5/100$

Total time span is 15 months. That is 1 year 3 months. So in quarters this is the same time span as 5 quarterly cycles

Let the initial sum (principle sum) be $P$

Then we have: $" "P(1+1.5/400)^5=$9015.75$

$P(401.5/400)^5=$9015.75$

$P=$9015.75 -:(401.4/400)^5$

$P=$9015.75 xx(400/401.4)^5 ~~$8848.5899...$

$P~~$8848.59$ to 2 decimal places