Answer:
A = $7,449.23
Step-by-step explanation:
First, convert R as a percent to r as a decimal
r = R/100
r = 8/100
r = 0.08 rate per year,
Then solve the equation for A
A = P(1 + r/n)nt
A = 5,000.00(1 + 0.08/12)(12)(5)
A = 5,000.00(1 + 0.006666667)(60)
A = $7,449.23
Summary:
The total amount accrued, principal plus interest, with compound interest on a principal of $5,000.00 at a rate of 8% per year compounded 12 times per year over 5 years is $7,449.23.
