Answer:
4,556.33
Step-by-step explanation:
3400 times 5% is 3570
3570 times 5% is 3748.50 (2 year)
3748.50 times 5% is 3935. 925 (3 years)
3935. 925 times 5% is 4132.72125 (4 years)
4132.72125 times 5% is 4339.3573125 (5 years)
4339.3573125 times 5% is 4556.325178125 (6 years)
First, convert R percent to r a decimal
r = R/100
r = 5%/100
r = 0.05 per year,
Then, solve our equation for A
A = P(1 + r/n)nt
A = 3,400.00(1 + 0.05/1)(1)(6)
A = $ 4,556.33
Summary:
The total amount accrued, principal plus interest,
from compound interest on an original principal of
$ 3,400.00 at a rate of 5% per year
compounded 1 times per year
over 6 years is $ 4,556.33.
