John invest $2,975 at 4% interest compound annually. What will be the balance in the account after?
a) 3,272.50
b)3,281.48
c) 5,493.86*********
d) 7,735.00
if i am wrong please explain why i am and what i should do, step wise thanks so much and hopfully this helps
well, your answer is the balance after about 15.6 years, so I suspect it's not right. What did you intend?
i need help i feel its 3272.50
After what?
2.5 years. I had the same question.
please give us all of the answers
To calculate the balance in the account after a certain period of time with compound interest, we can use the formula:
A = P(1 + r/n)^(nt)
Where:
A is the final amount (balance)
P is the principal amount (initial investment)
r is the annual interest rate (as a decimal)
n is the number of times interest is compounded per year
t is the number of years
In this case:
P = $2,975
r = 4% = 0.04 (since 4% is equivalent to 0.04 as a decimal)
n = 1 (compounded annually)
t = the period of time is not specified, so let's assume it is 1 year for simplicity.
Substituting the values into the formula, we get:
A = 2975(1 + 0.04/1)^(1*1)
= 2975(1 + 0.04)^1
= 2975(1.04)
= 3094
So, the balance in the account after 1 year will be $3,094.
None of the given answer choices (a, b, c, d) matches this result. Therefore, the correct answer is not provided in the given options.