Question

What is the final balance for an account starting with $2000 at 3.5% interest compounded annually for 3 years? A = P(1 + r)t A. $2217.44 B. $4290.75 C. $6210.00 D. $8100.00

Answer 1

the correct answer is A

Answer 2

I know this is late, but I can help explain so you can understand it.

Use this: A = P(1 + r)t

So,

P = 2,000 (How much you starting off)

r = 3.5% or 0.035 (your interest)

t = 3 (years)

The formula looks like this: 2000(1 + 0.035)^3

2000(1.035)^3

2000 x 1.1087...

= 2217.44