Question

find the amount accumulated after investing a principal P for t years at an interest rate compounded k times per year . ​

Answer 1

The accumulated amount is 2,122.20 to the nearest cent

Using formula and parameters given ;

• 
  `A = P(1 + r/k)^(kt)`

• A = Accumulated amount
• P = principal = $1,500
• r = interest rate = 7%
• k = number of periods compounded = 4
• t = years = 5

Substituting our values into the formula;

`A = P(1 + r/k)^(kt)`

`A = 1,500 (1 + 0.07/4)^(4*5)`

`A = 1,500 (1 + 0.07/4)^(20)`

A = 1,500 (1.4148)

A = 2,122.20

The accumulated amount is 2,122.20 to the nearest cent

Answer 2

A = $2,122.20

Explanation:

A = P(1 + r/k)^kt

Where,

A = future amount

P = principal = $1,500

r = interest rate = 7%

k = number of periods compounded = 4

t = years = 5 years

A = P(1 + r/k)^kt

= 1,500 (1 + 0.07/4)^4*5

= 1,500 (1 + 0.0175)^20

= 1,500 (1.0175)^20

= 1,500 (1.4148)

= 2,122.20

A = $2,122.20