Question

4)
I
You deposit $2500 in an account that pays 6 percent annual interest. Find the balance after 3
years if the interest is compounded with the given frequency.

Answer 1

Answer:

$2,977.54

Step-by-step explanation:

You are going to use the compound interest formula:

$A=P(1+\frac{r}{n} )^{nt}$

P = initial balance

r = interest rate

n = number of times compounded annually

t = time

First, change 6% into the decimal form:

6% -> $\frac{6}{100}$ -> 0.06

Next, lets plug in the values:

$A=2,500(1+\frac{0.06}{1} )^{3(1)}$

$A=2,977.54$

Your answer will be $2,977.54