Question

Dan deposits $2,500 in an account that earns an interest rate of 4% compounded annually. What is the balance in the account at the end of 10 years? A) $2,800.45 B) $3,112.85 C) $3,700.61 D) $3,935.58

Answer 1

A = P*(1 +r)^t
= 2500*(1.04)^10
≈ 3700.61 . . . . . . . . . . . . matches C