Answer:
A = $17,238.65
I (interest) = $8,838.65
Explanation:
Using the formula A = P(1 + r/n)^nt
A = $17,238.65
A = P + I where
P (principal) = $8,400.00
I (interest) = $8,838.65
First, convert R as a percent to r as a decimal
r = R/100
r = 3.6/100
r = 0.036 rate per year,
Then solve the equation for A
A = P(1 + r/n)^nt
A = 8,400.00(1 + 0.036/12)^(12)(20)
A = 8,400.00(1 + 0.003)^(240)
A = $17,238.65
Summary:
The total amount accrued, principal plus interest, with compound interest on a principal of $8,400.00 at a rate of 3.6% per year compounded 12 times per year over 20 years is $17,238.65