## Thinking Mathematically (6th Edition)

(a) After 2.5 years, there will be \$1855.10 in the account. (b) The interest earned is \$355.10
(a) We can use this formula: $A = P~(1+\frac{r}{n})^{nt}$ $A$ is the final amount in the account $P$ is the principal (the amount of money invested) $r$ is the interest rate $n$ is the number of times per year the interest is compounded $t$ is the number of years $A = P~(1+\frac{r}{n})^{nt}$ $A = (\$1500)~(1+\frac{0.085}{360})^{(360)(2.5)}A = \$1855.10$ After 2.5 years, there will be \$1855.10 in the account. (b) We can find the interest earned.$A - P = \$1855.10 - \$1500 = \$355.10$ The interest earned is \\$355.10