If the initial amount is $6000 , rate of interest 8% then after 15 years the amount willbe $19957.218.
What is compound interest?
Compound interest is the interest calculated on the principal and the aggregate interest. It may be copounded annually,semi annually, monthly, bimonthly,etc.
How to calculate interest?
We have been given that the deposit is $6000,rate is 8% which is compounded monthly.
So effective rate of interest will be 8/1200=0.0067.
n will be 15*12=180
The sum after 15 years=6000[tex](1+0.0067)^{180}[/tex]
S=6000[tex](1+0.0067)^{180}[/tex]
Take log both sides.
log S=log 6000[tex](1+0.0067)^{180}[/tex]
log S=log 6000+log [tex](1+0.0067)^{180}[/tex]
log S=log 6000+180 log (1.0067)
log S=3.7781+180*0.0029
log S=3.7781+0.522
log S=4.3001
S=AL (4.3001)
S=19957.218
Hence if the initial amount is $6000 , rate of interest 8% then after 15 years the amount willbe $19957.218.
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