Find the Accumulated Amount a If the Principal P Is

question 252

Multiple Choice

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 = $2,500, r = 6%, t = 15, compounded semiannually

• A) A = $6,108.05
• B) A = $5,991.40
• C) A = $6,068.16
• D) A = $6,149.01

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Definitions:

Monthly Payments

Regular payments made over a period of time towards settling a debted amount, often associated with loans or lease agreements.

Fringe Benefit

Additional compensation provided to employees beyond their base salaries, such as health insurance, retirement plans, and paid time off.

Loan Payment Schedule

A detailed plan indicating the amounts due and payment dates over the life of a loan.

Effective Rate

The actual interest rate an investment earns or a loan accrues due to compounding over a specified period.