jose invests 3,250 at a 6% interest compounded anually. What will be the balance in the account after 3.5 years.
a. 3,032.50
b. 3,985.23
c. 4,752.00*
d. 5,200.00
check plz
where tf mr sue at lmso
To calculate the balance in the account after 3.5 years with compound interest, we can use the formula:
A = P(1 + r/n)^(nt)
where:
A = the ending balance
P = the principal amount, which is $3,250
r = the interest rate, which is 6% or 0.06
n = the number of times interest is compounded per year, which is 1 (compounded annually)
t = the number of years, which is 3.5
Plugging in the values into the formula:
A = 3,250(1 + 0.06/1)^(1 * 3.5)
A = 3,250(1 + 0.06)^3.5
A = 3,250(1.06)^3.5
Calculating this, we find:
A ≈ 3,250(1.191016)
A ≈ 3,872.50
Therefore, the balance in the account after 3.5 years will be approximately $3,872.50.
Since none of the given options match this answer exactly, none of the options are correct.
To calculate the balance in the account after 3.5 years with compound interest, we can use the formula:
A = P(1 + r/n)^(nt)
Where:
A is the final amount or balance in the account
P is the principal amount invested (initial amount) which is $3,250
r is the annual interest rate (in decimal form) which is 6% or 0.06
n is the number of times that interest is compounded per year, which is annual (1 time)
t is the time in years
Plugging in the values into the formula:
A = 3,250(1 + 0.06/1)^(1*3.5)
A = 3,250(1 + 0.06)^3.5
A = 3,250(1.06)^3.5
A ≈ 3,250 * 1.214359 (rounded to 6 decimal places)
A ≈ 3,952.04635
The closest answer option to $3,952.05 is option B: $3,985.23.
Therefore, the correct answer is option B: $3,985.23.
3250 (1 + .06)^3
none of the answers is correct
3.5 years with annual compounding means that only 3 compounding periods have occurred