Question

Round to the nearest cent. Find the compound amount. Amount $8470 Rate 12% compounded monthly time (years) 2

Answer 1

Amount = $10.754.61

Explanation:

Given:

Principal Amount = P = $8,470

Interest rate = r = 12% = 0.12

Time = t = 2

Number of compounding periods in a year = n = 12

Here we have to find the amount using the formula given below.

A = p(1 + r/n)^n*t

Now plug in the given values in the above formula, we get

A = 8470 (1 + 0.12/12)^12*2

A = 8470(1 + 0.01)^24

A = 8470(1.01)^24

A = $10.754.61

That's the answer.

Thank you.