Question

Avery deposited $1,250 in a new savings account. Determine which amount is closest to the balance of the account at the end of 3 years at 5.5% interest compounded annually if she did not make any further deposit or withdrawal.

Answer 1

Answer:

$1456.25

Step-by-step explanation:

Given data

P= $1,250

t= 3 years

r=5.5%

The compound interest expression is given as

A= P(1+r)^t

substitute

A=  1250(1+0.055*3)

A=  1250(1+ 0.165)

A= 1250(1.165)

A= 1456.25

Hence the amount after 3 years is $1456.25