Question

Find the accumulated amount A if the principal P is invested at the interest rate of r/year for t years. P=$1000,r=3(1/2) %,t=5, compounded annually

Answer 1

To find the accumulated amount A when the principal P is invested at the interest rate of r/year for t years, we can use the formula: A = P(1 + r/n)^(n*t). In this case, P = $1000, r = 3.5%, t = 5, and the interest is compounded annually, so n = 1. Plugging in the values, we get A = 1000(1 + 0.035/1)^(1*5) = $1192.70. Therefore, the accumulated amount is $1192.70.

Step-by-step explanation:

To find the accumulated amount A when the principal P is invested at the interest rate of r/year for t years, we can use the formula: A = P(1 + r/n)^(n*t).

In this case, P = $1000, r = 3.5%, t = 5, and the interest is compounded annually, so n = 1.

Plugging in the values, we get A = 1000(1 + 0.035/1)^(1*5) = $1192.70. Therefore, the accumulated amount is $1192.70.