Input data
Principal (P) = 7300
Annual Rate (R) = 7%
Time (t in years) = 3 years
Procedure
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
[tex]A=P(1+r/n)^{nt}[/tex][tex]A=7300(1+\frac{0.035}{2})^{2\cdot3}[/tex]A = $ 8,973.56
Summary:
The total amount accrued, principal plus interest, from compound interest on an original principal of $ 7,300.00 at a rate of 7% per year
compounded 2 times per year over 3 years is $ 8,973.56.
