Answer:
A = $5,984.74
A = P + I where
P (principal) = $5,000.00
I (interest) = $984.74
Step-by-step explanation:
First, convert R as a percent to r as a decimal
r = R/100
r = 3/100
r = 0.03 rate per year,
Then solve the equation for A
A = P(1 + r/n)nt
A = 5,000.00(1 + 0.03/12)(12)(6)
A = 5,000.00(1 + 0.0025)(72)
A = $5,984.74
Summary:
The total amount accrued, principal plus interest, with compound interest on a principal of $5,000.00 at a rate of 3% per year compounded 12 times per year over 6 years is $5,984.74.
