Answer:
Step-by-step explanation:
For 4%
A = $56,363.59
A = P + I where
P (principal) = $50,000.00
I (interest) = $6,363.59
calculation step
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 = 50,000.00(1 + 0.04/12)(12)(3)
A = 50,000.00(1 + 0.003333333)(36)
A = $56,363.59
Summary:
The total amount accrued, principal plus interest, with compound interest on a principal of $50,000.00 at a rate of 4% per year compounded 12 times per year over 3 years is $56,363.59.
for 5 %
A = $58,073.61
A = P + I where
P (principal) = $50,000.00
I (interest) = $8,073.61
calculation step
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 = 50,000.00(1 + 0.05/12)(12)(3)
A = 50,000.00(1 + 0.004166667)(36)
A = $58,073.61
Summary:
The total amount accrued, principal plus interest, with compound interest on a principal of $50,000.00 at a rate of 5% per year compounded 12 times per year over 3 years is $58,073.61.
For 6 %
A = $59,834.03
A = P + I where
P (principal) = $50,000.00
I (interest) = $9,834.03
calculation step
First, convert R as a percent to r as a decimal
r = R/100
r = 6/100
r = 0.06 rate per year,
Then solve the equation for A
A = P(1 + r/n)nt
A = 50,000.00(1 + 0.06/12)(12)(3)
A = 50,000.00(1 + 0.005)(36)
A = $59,834.03
Summary:
The total amount accrued, principal plus interest, with compound interest on a principal of $50,000.00 at a rate of 6% per year compounded 12 times per year over 3 years is $59,834.03.
