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5 votes
Tricia invested $8500 at 3% interest compounded annually. How much interest will she earn in 3 years

A.$255.00
B.$788.18
C.$9288.18
D.$10,174.50

2 Answers

7 votes
use this equation to help you find your answer
Tricia invested $8500 at 3% interest compounded annually. How much interest will she-example-1
User Shinjw
by
5.1k points
2 votes

Answer: Choice C) $9288.18

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She has P = 8500 dollars to deposit for t = 3 years and it's compounded n = 1 times per year. So this means the final amount A is...

A = P*(1+r/n)^(n*t)

A = 8500*(1+0.03/1)^(1*3)

A = 8500*(1.03)^3

A = 8500*(1.092727)

A = 9288.1795

A = 9288.18

User Sarosh Mirza
by
5.0k points