Principal (P): $ 4890
Rate (R): % 8
per year
Time (t): Month 18
Equation:
A = P(1 + rt)
First, converting R percent to r a decimal
r = R/100 = 8%/100 = 0.08 per year.
Putting time into years for simplicity,
18 months / 12 months/year = 1.5 years.
Solving our equation:
A = 4890(1 + (0.08 × 1.5)) = 5476.8
A = $5,476.80
