Question

Given the formula A = P(1 + )". compute A (rounded to two decimal places) if P = 10,000,7

= 0.08, k = 2, and n = 12.
A 124,800.00
B 16,010.32
C 25,181.70
D 129,600.00
30.32

Answer 1

A = 16010.32

Explanation:

Given that,

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

Put P = 10,000, r = 0.08, k = 2 and n = 12 in the above formula to find A.

`A=10,000(1+(0.08)/(2))^(12)\\\\=10,000* (1.04)^(12)\\\\=16,010.32`

So, the value of A is 16010.32. Hence, the correct option is (B).