Answer:
Principal = $9,152.93
Step-by-step explanation:
A = $9,152.93
A = P + I where
P (principal) = $7,500.00
I (interest) = $1,652.93
Calculation Steps:
First, convert R as a percent to r as a decimal
r = R/100
r = 10/100
r = 0.1 rate per year,
Then solve the equation for A
A = P(1 + r/n)nt
A = 7,500.00(1 + 0.1/12)(12)(2)
A = 7,500.00(1 + 0.008333333)(24)
A = $9,152.93
Summary:
The total amount accrued, principal plus interest, with compound interest on a principal of $7,500.00 at a rate of 10% per year compounded 12 times per year over 2 years is $9,152.93.
