Answer:
The total amount accrued, principal plus interest, from compound interest on an original principal of $ 2600 at a rate of 7% per year compounded 1 time per year over 13 years is $ 6266.
Step-by-step explanation:
Given
Principle P = $2600
Interest rate r = 7% = 0.07
Time period t = 13 years
Compounded annually means: n = 1
To determine
Accrued Amount = ?
Using the formula
[tex]A\:=\:P\left(1\:+\:\frac{r}{n}\right)^{nt}[/tex]
substituting P = 2600, r = 0.07, t = 13, n = 1
[tex]A\:=\:2600\left(1\:+\:\frac{0.07}{1}\right)^{1\left(13\right)}[/tex]
[tex]A=2600\left(1+0.07\right)^{1\cdot \:13}[/tex]
[tex]A = 6266[/tex] $
Therefore, the total amount accrued, principal plus interest, from compound interest on an original principal of $ 2600 at a rate of 7% per year compounded 1 time per year over 13 years is $ 6266.
