Question

Molly invested $12,000 in an account with an interest rate of 6%. What is the amount in Molly's account after 6 years if the interest was compounded annually? A) $5,022.23 B) $17,022.23 C) $22,044.46 D) $170,222.26

Answer 1

the answer is b hope it helps

Answer 2

The formula for compound interest is given by:

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

where ,

A= Amount,

P=Principal

r=rate of interest

n= number of times interest is compounded per year

t = time ( in years)

Plugging the values ,

P = $12,000

r=0.06

t=6 years

n=1(annually compounded)

Plugging these in the formula,

$A = 12000 (1+\frac{0.06}{1})^{1*6}$

A =$17022.229 which is approximately 17022.23

Answer: Amount is option B. $17022.23