Answer:
I (interest) = $1.58
Step-by-step explanation:
A = $11.58
A = P + I where
P (principal) = $10.00
I (interest) = $1.58
First, convert R as a percent to r as a decimal
r = R/100
r = 5/100
r = 0.05 rate per year,
Then solve the equation for A
A = P(1 + r/n)^nt
A = 10.00(1 + 0.05/1)^(1)(3)
A = 10.00(1 + 0.05)^(3)
A = $11.58
Summary:
The total amount accrued, principal plus interest, with compound interest on a principal of $10.00 at a rate of 5% per year compounded 1 times per year over 3 years is $11.58
