Answer:
A = $122.99
Step-by-step explanation:
A = P + I where
P (principal) = $100.00
I (interest) = $22.99
First, convert R as a percent to r as a decimal
r = R/100
r = 3/100
r = 0.03 rate per year,
Then solve the equation for A
A = P(1 + r/n)nt
A = 100.00(1 + 0.03/1)(1)(7)
A = 100.00(1 + 0.03)(7)
A = $122.99
Therefore:
The total amount accrued on a principal of $100.00 at a rate of 3% per year compounded 1 time per year over 7 years is $122.99.
