What’s the correct answer for this?
1 answer:
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Given:
Principal amount = $2000
Rate of interest = 3.5% compounded quarterly.
Time = 6 years
To find:
The amount after 6 years.
Solution:
The formula for amount after compound interest is:
Where, P is principal, r is rate of interest in decimal, n is the number of time interest compounded in an year and t is the number of years.
The interest is compounded quarterly, so .
Substituting , we get
Approximate the value to the nearest hundredth.
The amount after 6 years us $2465.10. Therefore, the correct option is A.