What word goes with this definition; Money paid or earned only on the principal
1 answer:
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We will use the equation 
, where P is the initial amount invested, r is the interest rate in decimal form, n is the number of times in a year the money is compounded, and t is the number of years the money will be invested. Our P = 300, r = .04, n = 12 (there are 12 months in a year), and t = 8. Filling in accordingly, 
. Simplifying what we can gives us 
. Doing that addition inside the parenthesis and then raising that number to the 96th power gives us A(t) = 300(1.376395075) so A(t) = $412.92, choice B above.