Question

The required time is 3 years.

Answer 1

Answer:

Step-by-step explanation:

For 4%

A = $56,363.59

A = P + I where

P (principal) = $50,000.00

I (interest) = $6,363.59

calculation step

First, convert R as a percent to r as a decimal

r = R/100

r = 4/100

r = 0.04 rate per year,

Then solve the equation for A

A = P(1 + r/n)nt

A = 50,000.00(1 + 0.04/12)(12)(3)

A = 50,000.00(1 + 0.003333333)(36)

A = $56,363.59

Summary:

The total amount accrued, principal plus interest, with compound interest on a principal of $50,000.00 at a rate of 4% per year compounded 12 times per year over 3 years is $56,363.59.

for 5 %

A = $58,073.61

A = P + I where

P (principal) = $50,000.00

I (interest) = $8,073.61

calculation step

First, convert R as a percent to r as a decimal

r = R/100

r = 5/100

r = 0.05 rate per year,

Then solve the equation for A

A = P(1 + r/n)nt

A = 50,000.00(1 + 0.05/12)(12)(3)

A = 50,000.00(1 + 0.004166667)(36)

A = $58,073.61

Summary:

The total amount accrued, principal plus interest, with compound interest on a principal of $50,000.00 at a rate of 5% per year compounded 12 times per year over 3 years is $58,073.61.

For 6 %

A = $59,834.03

A = P + I where

P (principal) = $50,000.00

I (interest) = $9,834.03

calculation step

First, convert R as a percent to r as a decimal

r = R/100

r = 6/100

r = 0.06 rate per year,

Then solve the equation for A

A = P(1 + r/n)nt

A = 50,000.00(1 + 0.06/12)(12)(3)

A = 50,000.00(1 + 0.005)(36)

A = $59,834.03

Summary:

The total amount accrued, principal plus interest, with compound interest on a principal of $50,000.00 at a rate of 6% per year compounded 12 times per year over 3 years is $59,834.03.