Mathematics

Question

What is the final balance for an account starting with $2000 at 3.5% interest compounded annually for 3 years? A = P(1 + r)t A. $2217.44 B. $4290.75 C. $6210.00 D. $8100.00

2 Answer

  • the correct answer is A
  • I know this is late, but I can help explain so you can understand it.

    Use this:  A = P(1 + r)t

    So,  

    P = 2,000 (How much you starting off)

    r  = 3.5% or 0.035 (your interest)

    t =  3 (years)

    The formula looks like this: 2000(1 + 0.035)^3

                                                2000(1.035)^3

                                                2000 x 1.1087...

                                               =  2217.44





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