Question

$485 is deposited into a savings account that earns 3.25% compound interest for 6 years. How much is in the account at the end of 6 years?
A. 587.60
B. 579.58
C. 94.58
D. 102.60

Answer 1

Answer:

A. 587.60

Step-by-step explanation:

Use the formula:

$A=P(1+r\%)^t$

where P=$485

$r=3.25\%=0.0325$

and

t=6 years.

We substitute the values into the formula to get:

$A=485(1+0.0325)^6$

This simplifies to:

$A=485(1.0325)^6$

$A=587.60$

The correct choice is A