Answer:
A = $174,742.21
A = P + I where
P (principal) = $100,000.00
I (interest) = $74,742.21
Step-by-step explanation:
First, convert R as a percent to r as a decimal
r = R/100
r = 8/100
r = 0.08 rate per year,
Then solve the equation for A
A = P(1 + r/n)nt
A = 100,000.00(1 + 0.08/12)(12)(7)
A = 100,000.00(1 + 0.006666667)(84)
A = $174,742.21
Summary:
The total amount accrued, principal plus interest, with compound interest on a principal of $100,000.00 at a rate of 8% per year compounded 12 times per year over 7 years is $174,742.21.
