QUESTION: Find the total accrued amount.
FORMULA: A= P( 1 + rt )
where
A = total accrued amount (principal+interest)
P = principal amount
r = rate of interest per year
t =t time period
SOLUTION:
Given: A = $1300, r = 2% or 0.02 in decimal , t = 5 yrs
Let's substitute the given to the given formula above.
Substitution:
A= P( 1 + rt )
A= $1300( 1 + (0.02*5))
A = $1300 (1+0.1)
A = $1300 (1.1)
A = $1430
ANSWER: The total accrued amount, A = $1430