We are given
Principal (P) = $415
Rate (r) = 7% = 0.07
Time (t) = 1.5 years
We want to find the Compound Interest
Solution
The formula for compound interest (I) is given as
[tex]I=p(1+\frac{r}{n})^{nt}[/tex]n = 1
[tex]\begin{gathered} I=p(1+\frac{r}{n})^{nt} \\ I=415(1+\frac{0.07}{1})^{1\times1.5} \\ I=415(1+0.07)^{1.5} \\ I=415(1.07)^{1.5} \\ I=459.3288916 \\ I=459.33 \end{gathered}[/tex]Thus, the compound interest is $459.33
