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densk [106]
3 years ago
10

An investment of 11,000 is made into an account that earns 4.25% annual compound interest for 30 months. Assuming no other depos

its or withdrawal are made, what is the total value of the account after 30 months?
A: $12,206.27

B: $13,412.54

C: 11,000

D: 1,206.27​
Mathematics
1 answer:
LenKa [72]3 years ago
5 0

Answer:

It should be $12168.75

Step-by-step explanation:

First, converting R percent to r a decimal

r = R/100 = 4.25%/100 = 0.0425 per year,

then, solving our equation

I = 11000 × 0.0425 × 2.5 = 1168.75

I = $ 1,168.75

The simple interest accumulated

on a principal of $ 11,000.00

at a rate of 4.25% per year

for 2.5 years is $ 1,168.75.

1,168.75 + 11000 = 12168.75

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