contestada

1) Beth invests $7,417 in a savings account
with a fixed annual interest rate of 4%
compounded 6 times per year. What will
the account balance be after 11 years?
A) $10,887.94 B) $11,967.35
C) $10,514.53 D) $11,499.63

Respuesta :

qop

Answer:

D) $11,499.63

Step-by-step explanation:

Lets use the compound interest formula provided to solve this:

[tex]A=P(1+\frac{r}{n} )^{nt}[/tex]

P = initial balance

r = interest rate (decimal)

n = number of times compounded annually

t = time

First, change 4% into a decimal:

4% -> [tex]\frac{4}{100}[/tex] -> 0.04

Since the interest is compounded 6 times a year, we will use 6 for n. Lets plug in the values now:

[tex]A=7,417(1+\frac{0.04}{6})^{6(11)}[/tex]

[tex]A=11,499.63[/tex]

Your answer is D) $11,499.63

Otras preguntas