Question

If $10,500 is deposited in a compound interest account paying 2.99% interest annually, how much will be in the account after 5 years? Round your answer to the nearest cent.

A. $12166.47
B. $11766.78
C. $12156.39
D. $11236.98

Answer 1

The formula for compound interest is:
A=P(1+r)^n
where is
P=principal=10,500
r=interest as a percent=2.99/100=0.0299
n=years
A=10,500(1+0.0299)^5=10500*(1.0299)^%=10500*1.158=12166.47
choice A