Answer: D) $3,981.74
Step-by-step explanation:
We would apply the formula for determining compound interest which is expressed as
A = P(1+r/n)^nt
Where
A = total amount in the account at the end of t years
r represents the interest rate.
n represents the periodic interval at which it was compounded.
P represents the principal or initial amount invested.
From the information given,
P = 3500
r = 6.5% = 6.5/100 = 0.065
n = 4 because it was compounded 4 times in a year.
t = 2 years
Therefore,.
A = 3500(1+0.065/4)^4 × 2
A = 3500(1+0.01625)^8
A = 3500(1.01625)^8
A = 3981.74
