Answer:
Calculation Steps:
First, convert R as a percent to r as a decimal
r = R/100
r = 7.5/100
r = 0.075 rate per year,
Then solve the equation for A
A = P(1 + r/n)nt
A = 125,000.00(1 + 0.075/12)(12)(5)
A = 125,000.00(1 + 0.00625)(60)
A = $181,661.80
Summary:
The total amount accrued, principal plus interest, with compound interest on a principal of $125,000.00 at a rate of 7.5% per year compounded 12 times per year over 5 years is $181,661.80.