Chapter 7.7, Problem 19PPS

To determine

To find: The total amount if interest is componded annually.

Answer to Problem 19PPS

  $A=\$683.88$

Explanation of Solution

Given information:

  $P=\$595,R=4.75\%,n=3yrs$

Concept and Formula Used:

  $A=P{\left(1+\frac{R}{100}\right)}^n$

Calculation:

It is given that

  $\begin{array}{l}P=\$595,R=4.75\%,n=3yrs\\ A=P{\left(1+\frac{R}{100}\right)}^n\\ A=595{\left(1+\frac{4.75}{100}\right)}^3\\ A=595{\left(1.0475\right)}^3\\ A=\$683.88\end{array}$

Conclusion:

  $A=\$683.88$ .