MATH SOLVE

3 months ago

Q:
# 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

A:

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]