Find the balance in the account after the given period.
$3500 deposit earning 6.75% compounded monthly, after 6 months
(1 point)
Responses
$3,619.80
$3,619.80
$3,743.70
$3,743.70
$3,748.22
$3,748.22
$4,860.36
$4,860.36
To find the balance in the account after the given period, we can use the compound interest formula:
A = P(1 + r/n)^(nt)
Where:
A is the ending balance
P is the principal deposit
r is the annual interest rate (in decimal form)
n is the number of times interest is compounded per year
t is the number of years
Given:
P = $3500
r = 6.75% = 0.0675
n = 12 (compounded monthly)
t = 6 months = 6/12 = 0.5
Plugging in these values into the formula:
A = $3500(1 + 0.0675/12)^(12 * 0.5)
A = $3500(1 + 0.0056)^(6)
A = $3500(1.0056)^6
A ≈ $3743.70
Therefore, the balance in the account after 6 months is approximately $3,743.70.