Remember that
The compound interest formula is equal to
[tex]A=P(1+\frac{r}{n})^{nt}[/tex]
where
A is the Final Investment Value
P is the Principal amount of money to be invested
r is the rate of interest in decimal
t is the number of Time Periods
n is the number of times interest is compounded per year
in this problem we have
P=$1,700
t=5 years
r=1.53%=1.53/100=0.0153
n=12
Part A
substitute the given values
[tex]\begin{gathered} A=1,700(1+\frac{0.0153}{12})^{12*5} \\ \\ A=1,700(1.001275)^{60} \end{gathered}[/tex]
A=$1,835.06
therefore
The answer to Part A is $1,835.06
Part B'
Find out the interest
I=A-P
substitute given values
I=$1,835.06-$1,700
I=$135.06
The answer to Part B is $135.06
