Question

A principal of $5,350 is placed in an account that earns 3.5% interest. If the interest is compounded annually, how much money will be in the account at the end of 4 years?
a.
$5,760.06
b.
$5,537.25
c.
$6,099.00
d.
$6,139.25


Please select the best answer from the choices provided

A
B
C
D

Answer 1

Answer:

Option D. $\ 6,139.25$

Step-by-step explanation:

we know that    

The compound interest formula is equal to  

$A=P(1+\frac{r}{n})^{nt}$  

where  

A is the Final Investment Value  

P is the Principal amount of money to be invested  

r is the rate of interest  in decimal

t is Number of Time Periods  

n is the number of times interest is compounded per year

in this problem we have  

$t=4\ years\\ P=\ 5,350\\ r=0.035\\n=1$  

substitute in the formula above  

$A=\ 5,350(1+\frac{0.035}{1})^{1*4}$

$A=\ 5,350(1.035)^{4}=\ 6,139.25$

Answer 2

Answer:

the answer is C. $6099.00

Step-by-step explanation:

3.5% of 5350 = 187.25

187.25 * 4 = 749

749+5350 = 6099.00

add the $

=

C.$6099.00