A $6,300.00 principal earns 6% interest, compounded annually. After 3 years, what is the balance in the account?
a. $1,360,800.00
b. $7,503.40
c. $7,434.00***
d. $25,804.80
amount = 6300(1.06)^3
= 7503.40
how did you get your answer ??
This is correct.
Answer : $7,503.40
Shane you have to find 6% of 6,300 and then multiply it by 3 then add it to 6,300
the equation would be
6300(1+.06/1)^3
I still don't know how you got the answer to this question.
But atleast 7434 is a answer choice?
Yep its 7503
join my discord my tag is Kusupho#4772 add me to join because i can’t share links (i’m creating an connexus discord group)
To calculate the balance in the account after 3 years, we can use the formula for compound interest:
Balance = Principal * (1 + Interest Rate / Number of Compounding Periods) raised to the power of (Number of Compounding Periods * Time)
In this case, the principal is $6,300.00, the interest rate is 6% (or 0.06 as a decimal), and the compounding period is annually. The time is 3 years.
Using the formula, we can calculate the balance as follows:
Balance = $6,300.00 * (1 + 0.06 / 1)^(1 * 3)
= $6,300.00 * (1.06)^3
≈ $7,433.98
Therefore, the balance in the account after 3 years is approximately $7,433.98.
Among the provided options, the closest one is option c. $7,434.00, which is the correct answer.
I took 100/6. Divided 6300 by what I got from 100/6.
100/16=16.6666666667
6300/16.6666666667 =377.999999999
377.999999999 x3=1134
6300+1134 =7434
Which is incorrect so that's why i'm here lol