John invests $2,975 at 4% interest compounded annually. What will be the balance in the account after 2.5 years?
• $3,272.50****
• $3,281.48
• $5,493.86
• $7,735.00
I Change It To D.
Am I Right?
2975*1.04^2.5 = 3281.48
But, technically, since the interest is not compounded till the end of the year, you might get
2975*1.04^2 = 3217.76
Since that is not listed, I'd go with B
So, how did you get D? That's over double the initial amount. Not likely!
Mine says 3.5 years
@Fake Name some people have different test
Can some one please give me all of the answers
SamMEEe i need them please
thanks darling
To calculate the balance in the account after 2.5 years with 4% interest compounded annually, you can use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
A = the final amount
P = the principal amount ($2,975 in this case)
r = the annual interest rate (4% in this case)
n = the number of times interest is compounded per year (annually in this case)
t = the number of years (2.5 years in this case)
Using the formula and plugging in the values, we get:
A = 2975(1 + 0.04/1)^(1*2.5)
A = 2975(1 + 0.04)^2.5
A = 2975(1.04)^2.5
A ≈ 2975 * 1.1038126
A ≈ 3281.482314
Rounding to the nearest cent, the balance in the account after 2.5 years will be approximately $3,281.48.
Therefore, the correct answer from the given options is $3,281.48.