Answer:
2248+2224.91= 4472.91
Step-by-step explanation:
A = $2,248.00
I = A - P = $248.00
Equation:
A = P(1 + rt)
Calculation:
First, converting R percent to r a decimal
r = R/100 = 3.1%/100 = 0.031 per year.
Solving our equation:
A = 2000(1 + (0.031 × 4)) = 2248
A = $2,248.00
The total amount accrued, principal plus interest, from simple interest on a principal of $2,000.00 at a rate of 3.1% per year for 4 years is $2,248.00.
A = $2,224.91
A = P + I where
P (principal) = $2,000.00
I (interest) = $224.91
Calculation Steps:
First, convert R as a percent to r as a decimal
r = R/100
r = 2.7/100
r = 0.027 rate per year,
Then solve the equation for A
A = P(1 + r/n)nt
A = 2,000.00(1 + 0.027/1)(1)(4)
A = 2,000.00(1 + 0.027)(4)
A = $2,224.91
Summary:
The total amount accrued, principal plus interest, with compound interest on a principal of $2,000.00 at a rate of 2.7% per year compounded 1 times per year over 4 years is $2,224.91.
