Question

John invests $2,975 at 4% interest compounded annually. What will be the balance in the account after 2.5 years?

• $3,272.50
• $3,281.48
• $5,493.86
• $7,735.00

Answer 1

A: $3,272.50

Explanation:

Answer 2

2975✖️.04= 119

119✖️2.5=297.5

2975+297.5=3,272.50