Find the amount accumulated after investing a principal P for t years at an interest rate r.
-P = $1,000, t = 2, r = 6% , compounded annually (k = 1)
A) $1191.02
B) $1060.00
C) $1123.60
D) $123.6

Question

Quizplus · Accepted Answer

The formula for compound interest is A = P(1 + r/n)^(nt). Here, P = $1,000, r = 0.06, n = 1, and t = 2. Plugging these values into the formula gives A = 1000(1 + 0.06/1)^(1*2) = 1000(1.06)^2 = $1123.60.

Find the Amount Accumulated After Investing a Principal P for T