Question

Use the compound interest formula to compute the total amount accumulated and the interest eamed.

$9000 for 4 years at 7.5% compounded monthly
The total amount accumulated after 4 years is $
(Round to the nearest cent as needed.)
​

Answer 1

$12,137.39

Explanation:

Use the Compound Amount formula:

A = P (1 + r/n)^(nt), where r is the interest rate as a decimal fraction, n is the number of times the interest is compounded each year, and t is the number of years.

Here, A = $9000(1 + 0.075/12)^(12*4), or

= $9000(1.3486) = $12,137.39