Answer:
$2,889.06
Step-by-step explanation:
First, convert R as a percent to r as a decimal
r = R/100
r = 7.5/100
r = 0.075 rate per year,
Then solve the equation for A
A = P(1 + r/n)nt
A = 2,500.00(1 + 0.075/1)(1)(2)
A = 2,500.00(1 + 0.075)(2)
A = $2,889.06
Summary:
The total amount accrued, principal plus interest, with compound interest on a principal of $2,500.00 at a rate of 7.5% per year compounded 1 times per year over 2 years is $2,889.06.
