Questions: The principal represents an amount of money deposited in a savings account subject to compound interest at the given rate. Answer parts (a) and (b). Principal Rate Compounded Time ------------ 3500 1.5% monthly 4 years (i) Click the icon to view some finance formulas. a. Find how much money there will be in the account after the given number of years.

Solution Steps

The annual interest rate is given as 1.5%. To convert it to a decimal, we divide by 100: 1.5 / 100 = 0.015.

The interest is compounded 12 times per year.

The money is invested for 4 years.

Using the formula \(A = P(1 + \frac{r}{n})^{nt}\), where \(P\) is 3500, \(r\) is 0.015, \(n\) is 12, and \(t\) is 4, we calculate the future value \(A\).

The future value \(A\) is calculated as: \(A = 3500(1 + \frac{0.015}{12})^{12*4} = 3716.29\).

The interest earned over the period is: \(A - P = 3716.29 - 3500 = 216.29\).

Final Answer: