Question

Which of the following statements could be represented to determine the number of dollars in the account at the end of 3 years?A = 1500 (1.04)3Sally invested $1,500 in a savings account that earns 4% interest compounded annually.Sally invested $1,500 in a savings account that earns 3% interest compounded annually.Sally invested $1,500 in a savings account that earns 4% interest compounded quarterly.Sally invested $1,500 in a savings account that earns 3% interest compounded half-yearly.

Answer 1

The Solution:

Given:

$A=1500(1.04)^3$

Required:

Determine the right interpretation of the given model.

Answer:

Invested amount = $1500

Rate = 0.04 = 4%

Thus,

The correct answer is [option 1]