Answer:
(i) $ 1653.75
(ii) $ 1653.75
(ii) $ 1657.76
Explanation:
Since, the amount formula in compound interest,
[tex]A=P(1+\frac{r}{n})^{nt}[/tex]
Where,
P = Principal amount,
r = annual rate of interest,
t = number of years,
n = number of compounding periods per year,
(i) P = 1500, r = 5% = 0.05, t = 2 years, n = 1,
[tex]A=1500(1+0.05)^2 = 1500(1.05)^2 = \$ 1653.75[/tex]
(ii) P = 1500, r = 5% = 0.05, t = 2 years, n = 4,
[tex]A=1500(1+\frac{0.05}{4})^8 = 1500(1+0.0125)^8 = 1500(1.0125)^8\approx \$ 1653.75[/tex]
(iii) Amount formula in compound continuously,
[tex]A=Pe^{rt}[/tex]
[tex]A= 1500 e^{0.05\times 2}=1500 e^{0.1}\approx \$ 1657.76[/tex]
