Question

William invested $5000 in an account that earns 3.5% interest, compounded
annually. The formula for compound interest is A(t) = P(1 + 1!
How much did William have in the account after 4 years?
O
O
O
O
A. $16,607,53
B. $5737.62
C. $5700
D. $5070.37
SUBM

Answer 1

Answer:

Option B. $5737.62

Step-by-step explanation:

we know that    

The compound interest formula is equal to  

$A=P(1+\frac{r}{n})^{nt}$  

where  

A is the Final Investment Value  

P is the Principal amount of money to be invested  

r is the rate of interest  in decimal

t is Number of Time Periods  

n is the number of times interest is compounded per year

in this problem we have  

$t=4\ years\\ P=\ 5,000\\ r=0.035\\n=1$  

substitute

$A=\ 5,000(1+\frac{0.035}{1})^{1*4}$  

$A=\ 5,000(1.035)^{4}$  

$A=\ 5,737.62$