Find the amount accumulated after investing a principal P for t years at an interest rate r.
-P = $4307.17, t = 12 , r = 7% , compounded monthly (k = 12)
A) $9952.67
B) $9904.76
C) $9700.57
D) $9834.68

Question

Quizplus · Accepted Answer

The formula for compound interest is A = P(1 + r/n)^(nt), where A is the amount, P is the principal, r is the annual interest rate (in decimal), n is the number of times the interest is compounded per year, and t is the time the money is invested for in years. Here, P = $4307.17, r = 7% or 0.07, n = 12, and t = 12 years. Plugging these values into the formula gives A = 4307.17(1 + 0.07/12)^(12*12) = $9952.67.

Find the Amount Accumulated After Investing a Principal P for T