Write the equation that describes this situation. Use ^ for exponents. 7000 dollars is placed in an account with an annual interest rate of 6.5% for 15 years.

Answer 1

For compound interest, compounded yearly, use A = P(1+r/n)^(nt)

For this case, P = 7000, r = 0.065, t = 15 and n = 1

A = 7000(1.065)^15

Note: For compounded monthly, n = 12, semiannually, n=2, quarterly, n=4.

For simple interest:

A= P(1+rt)