The total amount accrued, principal plus interest, with compound interest on a principal of $5,000.00 at a rate of 4% per year compounded 1 times per year over 3 years is $5,624.32.
Given Data
A = P + I where
P (principal) = $5,000.00
I (interest) = $624.32
Calculation Steps:
First, convert R as a percent to r as a decimal
r = R/100
r = 4/100
r = 0.04 rate per year,
Then solve the equation for A
A = P(1 + r/n)^nt
A = 5,000.00(1 + 0.04/1)^(1)(3)
A = 5,000.00(1 + 0.04)^(3)
A = $5,624.32
Learn more about compound interest here:
https://brainly.com/question/24924853
