Find the accumulated amount A if the principal P = $13,000 is invested at the interest...

Find the accumulated amount A if the principal P = $13,000 is invested at the interest rate of r = 8% per year for t = 8.5 years, compounded quarterly. Please round your answer to the nearest cent.

A = $_________

Expert Solution

Required:

A = P(1 + r/n)^{t * n}

P = Principal

A = Total amount

n = No. of times compounded per year

r = Anuual interest rate

t = Time

We have, Principal = $13,000, t = 8.5%, n = 4, r = 8%

A = $13,000 * ( 1 + 0.08 / 4)^{8.5 * 4}

A = $13,000 * (1.02)³⁴

A = $13,000 * 1.960676032

A = $25,489

Thus, accumulated amount = $25,489.

jeff jeffy answered 2 years ago

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