Question

Complete the following using compound future value. (Use the Table 12.1 provided.)

Note: Round your answers to the nearest cent.
Time
12 years
Principal
$ 16,000
Rate
3%
Compounded
Annually
Amount
Interest

Answer 1

`~~~~~~ \textit{Compound Interest Earned Amount} \\\\ A=P\left(1+(r)/(n)\right)^(nt) \quad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\dotfill &\$16000\\ r=rate\to 3\%\to (3)/(100)\dotfill &0.03\\ n= \begin{array}{llll} \textit{times it compounds per year}\\ \textit{annually, thus once} \end{array}\dotfill &1\\ t=years\dotfill &12 \end{cases} \\\\\\ A = 16000\left(1+(0.03)/(1)\right)^(1\cdot 12) \implies A = 16000( 1.03)^(12)\implies A \approx 22812.17`