After t years, the expression that can be used to represent the money in Andres's account is A = P(1 + r/n)^nt
for t = 3
Answer:
A = $538.45
<h3 /><h3>Compound interest Computation</h3>
Given Data
Principal P = $500
Rate r = 2.5%
Time t = 3 years
A = P + I where
P (principal) = $500.00
I (interest) = $38.45
Calculation Steps:
First, convert R as a percent to r as a decimal
r = R/100
r = 2.5/100
r = 0.025 rate per year,
Then solve the equation for A
A = P(1 + r/n)^nt
A = 500.00(1 + 0.025/1)^(1)(3)
A = 500.00(1 + 0.025)^(3)
A = $538.45
Summary:
The total amount accrued, principal plus interest, with compound interest on a principal of $500.00 at a rate of 2.5% per year compounded 1 times per year over 3 years is $538.45.
Learn more about compound interest here:
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