Answer:
A = P 1,733.04
A = P + 1 where
P (principal) = P 750.00
I (interest) = P 983.04
Calculation Steps:
First, convert R percent to r a decimal
r = R / 100
r = 7%/100
r = 0.07 per year,
Then, solve our equation for A
A = P(1 + r / n) * n * t
A = 750.00(1 + 0.005833333/12)(12)(12)
A = P 1,733.04
Summary:
The total amount accrued, principal plus interest,
from compound interest on an original
principal of
P 750.00 at a rate of 7% per year
compounded 12 times per year
over 12 years is P 1,733.04.
