Joe invests 3,250 at a 6% interest compounded annually. What will be the balance in the account after 3.5 years?

A. $3,932.50
B. $3,985.23
C. $4,725.00
D. $3,500.00

It is A on Brainly

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When investing money with compound interest, the balance in the account increases faster over time compared to simple interest. In the given scenario, Joe invests $3,250 at a 6% interest compounded annually. After 3.5 years, the balance in his account would be $3,932.50 (Option A). This amount is calculated using the formula for compound interest, which considers the initial principal, the interest rate, and the time period. It's important to note that compound interest can be a powerful tool for growing wealth over time, as the interest earned is added to the principal and then earns interest itself. This means that the longer the money is invested and the higher the interest rate, the more substantial the balance in the account can become.