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1 vote
William invested $5000 in an account that earns 3.5% interest, compounded

annually. The formula for compound interest is A(t) = P(1 + 1!
How much did William have in the account after 4 years?
O
O
O
O
A. $16,607,53
B. $5737.62
C. $5700
D. $5070.37
SUBM

User Psv
by
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1 Answer

2 votes

Answer:

Option B. $5737.62

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=4\ years\\ P=\$5,000\\ r=0.035\\n=1

substitute


A=\$5,000(1+(0.035)/(1))^(1*4)


A=\$5,000(1.035)^(4)


A=\$5,737.62

User Ratnesh Maurya
by
7.6k points

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