find the amount accumlatrd after investing a principal P for t years at an interest rate compound annuay. P= $12,000 r=7.5% t=7

A = $19,908.59

Step-by-step explanation:

Compound Interest

Compound interest occurs when the interest earned in a given period is reinvested rather than paying it out. The interest in the next period is then earned on the principal sum plus previously accumulated interest.

The formula is:

Where:

A=final amount

P=initial principal balance

r=interest rate

k=number of times interest applied per time period

t=number of time periods elapsed

We are given the following data:

P = $12,000

r = 7.5% = 7.5/100 = 0.075

t = 7

k = 1 since there is only on compounding per year.

Applying the formula:

A = $19,908.59

i believe the correct answer is b.