To calculate the total amount after compound interest, we use the formula:

A = P (1 + r/n) ^ nt

Where:
A = the amount of money accumulated after n years, including interest.
P = principal amount (the initial amount of money)
r = annual interest rate (in decimal)
n = number of times that interest is compounded per year
t = time the money is invested for in years

Given in the problem:
P = $2500
r = 8% or 0.08 (in decimal)
n = 1 (since it's compounded annually)
t = 6 years

Substituting these values into the formula:

A = 2500 (1 + 0.08/1) ^ (1*6)
A = 2500 (1 + 0.08) ^ 6
A = 2500 * 1.08 ^ 6
A = 2500 * 1.586874322
A = $3967.19

So, the total amount after compound interest on a principal amount of $2500, with an interest rate of 8%, over a time period of 6 years compounded annually is $3967.19. However, this option is not available in the choices provided. There might be a mistake in the question or the options provided.

Question

To calculate the total amount after compound interest, we use the formula:

A = P (1 + r/n) ^ nt

Where:
A = the amount of money accumulated after n years, including interest.
P = principal amount (the initial amount of money)
r = annual interest rate (in decimal)
n = number of times that interest is compounded per year
t = time the money is invested for in years

Given in the problem:
P = $2500
r = 8% or 0.08 (in decimal)
n = 1 (since it's compounded annually)
t = 6 years

Substituting these values into the formula:

A = 2500 (1 + 0.08/1) ^ (1*6)
A = 2500 (1 + 0.08) ^ 6
A = 2500 * 1.08 ^ 6
A = 2500 * 1.586874322
A = $3967.19

So, the total amount after compound interest on a principal amount of $2500, with an interest rate of 8%, over a time period of 6 years compounded annually is $3967.19. However, this option is not available in the choices provided. There might be a mistake in the question or the options provided.

Knowee AI · Accepted Answer

To calculate the total amount after compound interest, we use the formula:

A = P (1 + r/n) ^ nt

Where:
A = the amount of money accumulated after n years, including interest.
P = principal amount (the initial amount of money)
r = annual interest rate (in decimal)
n = number of times that interest is compounded per year
t = time the money is invested for in years

Given in the problem:
P = $2500
r = 8% or 0.08 (in decimal)
n = 1 (since it's compounded annually)
t = 6 years

Substituting these values into the formula:

A = 2500 (1 + 0.08/1) ^ (1*6)
A = 2500 (1 + 0.08) ^ 6
A = 2500 * 1.08 ^ 6
A = 2500 * 1.586874322
A = $3967.19

So, the total amount after compound interest on a principal amount of $2500, with an interest rate of 8%, over a time period of 6 years compounded annually is $3967.19. However, this option is not available in the choices provided. There might be a mistake in the question or the options provided.

What is the total amount after compound interest on a principal amount of $2500, with an interest rate of 8%, over a time period of 6 years compounded annually?*$4550.00$4292.82$4560.00$4545.00

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