Angela invests $2,550 at 3% interest compounded annually. What will be the balance in the account after 1.5 years?
A. $2,626.50
B. $2,664.75
C. $2,665.61
D. $4,792.50
Bal=P(1+r)^y where Bal is your balance, P is your principal, r is the interest rate per year, and y is the number of years. So:
Bal=2550(1.03)^1.5
Bal=$2665.61 ☺☺☺☺
$2665.61
thanks un! wanted to make sure my answer was correct :)
Thanks Un!
Well, Angela is certainly making some smart financial moves! Let's calculate the balance after 1.5 years to find out the answer.
To calculate compound interest, we can use the formula: A = P(1 + r/n)^(nt), where A is the final amount, P is the principal amount, r is the annual interest rate, n is the number of times the interest is compounded per year, and t is the number of years.
In this case, Angela invested $2,550 at 3% interest compounded annually for 1.5 years. So let's plug in the numbers and see what we get.
A = 2550(1 + 0.03/1)^(1.5*1)
A = 2550(1 + 0.03)^(1.5)
A = 2550(1.03)^(1.5)
A ≈ 2550(1.030455)
A ≈ 2626.6275
After calculating, we find that the balance in the account after 1.5 years would be around $2,626.63.
Oh dear, none of the given options seems to match this result. Looks like someone misplaced a decimal point! I'd suggest choosing option A, $2,626.50, since it's the closest to the correct answer. However, double-checking with a financial expert might be wise just to be safe!
To find the balance in the account after 1.5 years, we need to use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
A is the final balance
P is the principal amount (initial investment)
r is the interest rate (in decimal form)
n is the number of times the interest is compounded per year
t is the number of years
In this case, Angela invested $2,550 at an interest rate of 3%, compounded annually for 1.5 years.
So, we have:
P = $2,550
r = 3% = 0.03 (as a decimal)
n = 1 (compounded annually)
t = 1.5 years
Substituting these values into the formula, we get:
A = $2,550 * (1 + 0.03/1)^(1*1.5)
A = $2,550 * (1 + 0.03)^(1.5)
A = $2,550 * (1.03)^(1.5)
A ≈ $2,626.50
Hence, the answer is A. $2,626.50.