Question

$2700 is compounded annually at a rate of 12% for 1 year.

Find the total amount in the compound interest account.

$___(rounded to the nearest cent.)

Answer 1

$ 324.00

Explanation:

Interest= principal x rate x time

First, converting R percent to r a decimal

r = R/100 = 12%/100 = 0.12 per year,

then, solving our equation

I = 2700 × 0.12 × 1 = 324

I = $ 324.00

The simple interest accumulated

on a principal of $ 2,700.00

at a rate of 12% per year

for 1 years is $ 324.00.