Investing $1000, compounding the interest once in a year will yield a final Amount of $1,935.28.
Given data
Principal = $1000
Rate = 4.5%
Time = 15 years
Calculation Steps:
First, convert R as a percent to r as a decimal
r = R/100
r = 4.5/100
r = 0.045 rate per year,
Then solve the equation for A
A = P(1 + r/n)^nt
A = 1,000.00(1 + 0.045/1)^(1)(15)
A = 1,000.00(1 + 0.045)^(15)
A = $1,935.28
Summary:
The total amount accrued, principal plus interest, with compound interest on a principal of $1,000.00 at a rate of 4.5% per year compounded 1 times per year over 15 years is $1,935.28.
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