Question

41) Gabriella invests $8,193 in a retirement

account with a fixed annual interest rate of
8% compounded 6 times per year. What
will the account balance be after 18 years?
A) $31,340.53 B) $37,085.87
C) $34,252.67 D) $40,729.29
​

Answer 1

Option C.
`\$34,252.67`

Explanation:

we know that

The compound interest formula is equal to

`A=P(1+(r)/(n))^(nt)`

where

A is the Final Investment Value

P is the Principal amount of money to be invested

r is the rate of interest in decimal

t is Number of Time Periods

n is the number of times interest is compounded per year

in this problem we have

`t=18\ years\\ P=\$8,193\\ r=0.08\\n=6`

substitute in the formula above

`A=\$8,193(1+(0.08)/(6))^(6*18)=\$34,252.67`