Answer:
The account balance will be $2,614.16 after 10 years ⇒ D
Step-by-step explanation:
The formula for compound interest, including principal sum is:
[tex]A=P(1+\frac{r}{n})^{nt}[/tex], where
- A is the future value of the investment/loan, including interest
- P is the principal investment amount
- r is the annual interest rate (decimal)
- n is the number of times that interest is compounded per unit t
- t is the time the money is invested or borrowed for
Let us use this rule to solve the question
∵ Ted invests $1,077 in a savings account with a fixed annual interest
rat 9% compounded three times per year
∴ P = 1,077
∴ r = 9% = [tex]\frac{9}{100}[/tex] = 0.09
∴ n = 3 ⇒ three times per year
∵ The time is ten years
∴ t = 10
Substitute these values in the rule above to find A
∵ [tex]A=1077(1+\frac{0.09}{3})^{3(10)}[/tex]
→ Use your calculator to find the answer
∴ A = 2,614.161681
→ Round it to the nearest cent (2d.p.)
∴ A = $2,614.16
∴ The account balance will be $2,614.16 after 10 years.
