Answer:
A = $ 7,449.23
A = P + I where
P (principal) = $ 5,000.00
I (interest) = $ 2,449.23
Step-by-step explanation:
Compound Interest Equation
A = P(1 + r/n)^nt
Where:
A = Accrued Amount (principal + interest)
P = Principal Amount
I = Interest Amount
R = Annual Nominal Interest Rate in percent
r = Annual Nominal Interest Rate as a decimal
r = R/100
t = Time Involved in years, 0.5 years is calculated as 6 months, etc.
n = number of compounding periods per unit t; at the END of each period
Compound Interest Formulas and Calculations:
Calculate Accrued Amount (Principal + Interest)
A = P(1 + r/n)^nt
Calculate Principal Amount, solve for P
P = A / (1 + r/n)^nt
Calculate rate of interest in decimal, solve for r
r = n[(A/P)(^1/nt) - 1]
Calculate rate of interest in percent
R = r * 100
Calculate time, solve for t
t = ln(A/P) / n[ln(1 + r/n)] = [ ln(A) - ln(P) ] / n[ln(1 + r/n)]
Formulas where n = 1 (compounded once per period or unit t)
Calculate Accrued Amount (Principal + Interest)
A = P(1 + r)^t
Calculate Principal Amount, solve for P
P = A / (1 + r)^t
Calculate rate of interest in decimal, solve for r
r = (A/P)1/t - 1
Calculate rate of interest in percent
R = r * 100
Calculate time, solve for t
t = t = ln(A/P) / ln(1 + r) = [ ln(A) - ln(P) ] / ln(1 + r)
Continuous Compounding Formulas (n → ∞)
Calculate Accrued Amount (Principal + Interest)
A = Pe^rt
Calculate Principal Amount, solve for P
P = A / ert
Calculate rate of interest in decimal, solve for r
r = ln(A/P) / t
Calculate rate of interest in percent
R = r * 100
Calculate time, solve for t
t = ln(A/P) / r
.