Question

Find the amount accumulated after investing a principle P for T years at an interest rate compounded annually.

P= $3,200 r=8% t=4
Hint: A=P(1+r/k)^kt

Answer 1

ohhh man, that's a nice hint, let's use it then


`\bf \qquad \textit{Compound Interest Earned Amount} \\\\ A=P\left(1+(r)/(n)\right)^(nt) \qquad \begin{cases} A=\textit{compounded amount}\\ P=\textit{original amount deposited}\to &\$3200\\ r=rate\to 8\%\to (8)/(100)\to &0.08\\ n= \begin{array}{llll} \textit{times it compounds per year}\\ \textit{annually, meaning once} \end{array}\to &1\\ t=years\to &4 \end{cases}`

Answer 2

A=3,200×(1+0.08)^(4)
A=4,353.56