Answer:
$20,520 at the end of the year
Step-by-step explanation:
A = P(1 + rt)
A = Total Accrued Amount (principal + interest)
P = Principal Amount
I = Interest Amount
r = Rate of Interest per year in decimal; r = R/100
R = Rate of Interest per year as a percent; R = r * 100
t = Time Period involved in months or years
P = $18,000
r = .14
t = 1
A = 18,000 (1+ ( .14 * 1 ) )
A = 18,000 (1 +.14)
A = 18,000 (1.14)
A = 20,520
$20,520 at the end of the year
