math

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

  1. 👍 0
  2. 👎 0
  3. 👁 953
  1. Trick question?

    Since the compounding is annually, the amount at 3.5 years is the same as it was after 3 years

    amount = 3250(1.06)^3
    = 3870.80

    1. 👍 0
    2. 👎 0
  2. I understand, but now that answer isn't one of my choices?

    $3932.50
    $3985.23
    $4752.00
    $5200.00

    1. 👍 1
    2. 👎 0
  3. Proof of my answer:
    now ----- 3250
    end of 1st year: 3250(1.06) = 3445
    end of 2nd year: 3445(1.06) = 3651.70
    end of 3rd year: 3641.70(1.06) = 3870.80 >> as I had before

    suppose they did
    3250(1.06)3.5 = 3985.23 which is one of the choices, BUT contradicts the concept of "compounded annually"

    They are wrong!

    1. 👍 0
    2. 👎 0
  4. I found out what I was doing wrong. I was not multiplying 1.06 to the power of 3.5. And that through me off. Wayyyy off.

    1. 👍 0
    2. 👎 0

Respond to this Question

First Name

Your Response

Similar Questions

  1. Calculus Please help!

    If 7000 dollars is invested in a bank account at an interest rate of 7 per cent per year. A) Find the amount in the bank after 6 years if interest is compounded annually? B) Find the amount in the bank after 6 years if interest is

  2. college

    Joan wants to start an IRA that will have $250,000 in it when she retires in 21 years. How much should she invest annually in her IRA to do this if the interest is 16% compounded quarterly?

  3. algebra

    Tasha invests $5,000 annually at 6% and $5,000 annually at 8%. Thomas invests $10,000 annually at 7%. Which statement accurately compares the two investments if interest is compounded annually?

  4. maths

    Ty received a separation payment of $25 000 from his former employer when he was 35-years old. He invested that sum of money at 5.5% compounded semi-annually. When he was 65, he converted the balance into an ordinary annuity

  1. algebra II

    Barry Newman's savings account has a balance of $2707. After 4 years, what will the amount of interest be at 5% compounded annually?

  2. Business Math

    Marcus invests $8,000, at 8% interest, compounded annually for 15 years. Calculate the compound interest for his investment.

  3. Math

    A $4,000.00 principal earns 5% interest compounded annually. After 4 years, what is the balance in the account? A. $500,000.00 B. $4,862.03 *** C. $4,600.00 D. $20,250.00

  4. Math

    1) A 3, 300.00 principal earns 4% interest compounded annually. After three years, what is the balance in the amount? 2) A 6,000.00 Annable earns 8% annual interest compounded semiannually (twice per year) after 35 years, what is

  1. Business Math

    Treasure Mountain International School in Park City, Utah, is a public middle school interested in raising money for next year's Sundance Film Festival. If the school raises $2,989 and invests it for 1 year at 3% interest

  2. math

    Suppose Taylor win $18000 in a lottery. If she invests half in a CD earning 4.2 % annual interest compounded quarterly and the rest in saving account earning 3.7% annual interest compounded monthly . How much money does she have

  3. Algebra

    Given the equation A=250(1.1)t, you can determine that the interest is compounded annually and the interest rate is 10%. Suppose the interest rate were to change to being compounded quarterly. Rewrite the equation to find the new

  4. Lat math question for some days. Can y'all help?

    Huan deposited $850 into a college savings account earning 4.8% interest compounded annually. He also deposited $850 into a second account earning 4.8% simple interest. He made no additional deposits. After 10 years, which account

You can view more similar questions or ask a new question.