Find the accumulated amount A, if the principal P is invested at an interest rate of r per year for t years. (ROUND ANSWER TO THE NEAREST CENT!!)P = $180,000, r = 8%, t = 7, compounded monthly

Accepted Solution

Answer:[tex]\$314,535,97[/tex]  Step-by-step explanation:we know 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 Number of Time Periods  n is the number of times interest is compounded per year in this problem we have  [tex]t=7\ years\\ P=\$180,000\\ r=8\%=8/100=0.08\\n=12[/tex]  substitute in the formula above  [tex]A=180,000(1+\frac{0.08}{12})^{12*7}[/tex]  [tex]A=180,000(\frac{12.08}{12})^{84}[/tex]  [tex]A=\$314,535,97[/tex]