Principal amount 25000 Interest rate 2.47 percent per year = 0.0247 number of times compounded per year 12 Number of years 2 Amount after 25 months = 25000 ( 1 +0.0247 / 12)^(25) = 25000(1.002058333)^(25) Amount after 2 years = 26318.74
b) 26318.74-25,000 = 1,318.74
2) Future amount 32349.72 Interest rate 4.27 percent per year = 0.0427 Number of times compounded per year 365 Number of years 18 Amount invested in 18 years = 32349.72 / ( 1 +0.0427 / 365)^(6570) = 32349.72 / (1.00011698630137)^(6570) Amount invested before 18 years = 15000.00
