Question

Find the accumulated amount ( A ) if the principal ( P ) is invested at the interest rate of ( r / y ) ear for ( t ) years. (Use a 365 -day year. Round your answer to the nearest cent.)

Answer 1

The accumulated amount of an investment is found using the future value formula with compound or simple interest, factoring in the initial principal, interest rate, time, and the number of times interest is compounded per year.

Step-by-step explanation:

To find the accumulated amount (A) of an investment, you can use the formula that combines the principal with the interest earned over time. Assuming that the interest is compounded annually, the formula for the future value received years in the future is:

Accumulated Amount (A) = Principal (P) x (1 + interest rate/n)^nt

Where principal (P) is the initial amount invested, interest rate is the annual interest rate as a decimal, n is the number of times that interest is compounded per year, and t is the number of years the money is invested. For simple interest calculation, the formula would be:

Accumulated Amount (A) = Principal (P) + (principal (P) × rate × time)

Using these formulas, you can calculate the total accumulated amount including the interest earned on the principal over a certain period.