The Retained earnings account has a credit balance of $23,800 before closing entries are made. Of total revenues for the period
1 answer:
You might be interested in
Answer:
$5,983.40
Explanation:
Data provided in the question:
Principle amount = $5,000
Interest rate, r = 6% = 0.06
Time, t = 3 years
Compounded monthly i.e number of periods n = 12
Now,
Final amount = Principle ×
or
Final amount = $5,000 ×
or
Final amount = $5,000 × 1.005³⁶
or
Final amount = $5,000 × 1.196
or
Final amount = $5,983.40