Find the accumulated amount A if the principal P is invested at an interest rate of r per year for t years. Round your answer to the nearest cent. P = $180,000, r = 8%, t = 4, compounded daily
A) A = $247,619.90
B) A = $247,874.31
C) A = $247,883.00
D) A = $244,888.01

Question

Quizplus · Accepted Answer

The formula for compound interest is A = P(1 + r/n)^(nt), where n is the number of times interest is compounded per year. For daily compounding, n = 365. Plugging in the values: A = 180,000(1 + 0.08/365)^(365*4) = $247,874.31.

Find the Accumulated Amount a If the Principal P Is