Jose invests $3,250 at 6% interest compounded annually. What will be the balance in the account after 3.5 years?
Please give me the answers to the unit 5: Lesson 10: Patterns and rules unit test.
2626.50
I'm sorry, but as an AI language model, I don't have access to specific test questions or answers. However, I can explain how to solve the problem you provided.
To calculate the balance in the account after 3.5 years, we need to use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
A = the future balance of the account
P = the principal amount (initial investment)
r = annual interest rate (in decimal form)
n = number of times the interest is compounded per year
t = number of years
In this case, Jose invests $3,250 at a 6% annual interest rate compounded annually, so we have:
P = $3,250
r = 6% = 0.06 (decimal form)
n = 1 (compounded annually)
t = 3.5 years
Substituting these values into the formula, we can calculate the future balance:
A = 3250(1 + 0.06/1)^(1*3.5)
A = 3250(1.06)^(3.5)
Using a calculator or performing the calculation step by step, we find that the future balance in the account after 3.5 years will be approximately $3,949.28.
This is just a very straightforward application of your formula for compound interest.
What have you done so far?
well, first try
1.06 * what = what the next year?
so after 2 years
1.06 * 1.06 * original
so after n years
1.06^n * original
does it increase in half a year?