Question

1) Beth invests $7,417 in a savings account

Answer 1

Answer:

D) $11,499.63

Step-by-step explanation:

Lets use the compound interest formula provided to solve this:

$A=P(1+\frac{r}{n} )^{nt}$

P = initial balance

r = interest rate (decimal)

n = number of times compounded annually

t = time

First, change 4% into a decimal:

4% -> $\frac{4}{100}$ -> 0.04

Since the interest is compounded 6 times a year, we will use 6 for n. Lets plug in the values now:

$A=7,417(1+\frac{0.04}{6})^{6(11)}$

$A=11,499.63$

Your answer is D) $11,499.63