Question

Given the formula A = P(1 + )". compute A (rounded to two decimal places) if P = 10,000,7

Answer 1

Answer:

A = 16010.32

Step-by-step explanation:

Given that,

$A=P(1+\dfrac{r}{k})^n$

Put P = 10,000, r = 0.08, k = 2 and n = 12 in the above formula to find A.

$A=10,000(1+\dfrac{0.08}{2})^{12}\\\\=10,000\times (1.04)^{12}\\\\=16,010.32$

So, the value of A is 16010.32. Hence, the correct option is (B).