Question

8300 dollars is placed in an account with an annual interest rate of 6.5%. How much will be an account after 14 years, to the nearest cent?

Answer 1

$ 20,043.46

Explanation:

Answer:

A = $ 20,043.46

A = P + I where

P (principal) = $ 8,300.00

I (interest) = $ 11,743.46

Calculation Steps:

First, convert R percent to r a decimal

r = R/100

r = 6.5%/100

r = 0.065 per year,

Then, solve our equation for A

A = P(1 + r/n)nt

A = 8,300.00(1 + 0.065/1)(1)(14)

A = $ 20,043.46

Summary:

The total amount accrued, principal plus interest,

from compound interest on an original principal of

$ 8,300.00 at a rate of 6.5% per year

compounded 1 times per year

over 14 years is $ 20,043.46.