The total amount accrued, principal plus interest, with compound interest on a principal of $12,000.00 at a rate of 14% per year compounded 12 times per year over 5 years is $24,067.32.The amount of the initial loan, or principal, is multiplied by one plus the annual interest rate raised to the number of compound periods minus one to determine compound interest.
<h3 /><h3>what is compound interest?</h3>
To begin, change R from a percentage to a decimal, using the formula:
r = R/100 r = 14/100
r = 0.14 rate per year;
Next, find A by solving
A = P(1 + r/n)nt A = 12,000.00(1 + 0.14/12)(12). (5)
A = 12,000.00(1 + 0.011666666666667)(60) (60)
A = $24,067.32
Summary: The total amount accrued, principal plus interest, with compound interest on a principal of $12,000.00 at a rate of 14% per year compounded 12 times per year over 5 years is $24,067.32.
The amount of the initial loan, or principal, is multiplied by one plus the annual interest rate raised to the number of compound periods minus one to determine compound interest. You will then be left with the loan balance plus compound interest.
To learn more about interest refer to:
brainly.com/question/2294792
#SPJ13
<span>