Use the compound interest formula to compute the total amount accumulated.
-$2000 for 6 years at 1.5% compounded monthly
A) $2015.05
B) $2188.23
C) $1750.58
D) $4054.57

Question

Quizplus · Accepted Answer

The compound interest formula is A = P(1 + r/n)^(nt), where A is the amount of money accumulated after n years, including interest, P is the principal amount (the initial amount of money), r is the annual interest rate (decimal), n is the number of times that interest is compounded per year, and t is the time the money is invested for in years. Plugging in the given values: A = 2000(1 + 0.015/12)^(12*6) = $2188.23.

Use the Compound Interest Formula to Compute the Total Amount