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Find the amount of interest for a 19-year investment of $4500 at a simple annual rate
of 2.73%

1 Answer

2 votes

Answer:

A = $7,554.84

A = P + I where

P (principal) = $4,500.00

I (interest) = $3,054.84First, convert R as a percent to r as a decimal

r = R/100

r = 2.73/100

r = 0.0273 rate per year,

Then solve the equation for A

A = P(1 + r/n)nt

A = 4,500.00(1 + 0.0273/12)(12)(19)

A = 4,500.00(1 + 0.002275)(228)

A = $7,554.84

Summary:

The total amount accrued, principal plus interest, with compound interest on a principal of $4,500.00 at a rate of 2.73% per year compounded 12 times per year over 19 years is $7,554.84.

Explanation:

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