Question

Jeff invested $3000 in an account that earns 6.5% interest, compounded annually. The formula for compound interest is A=P(1+I)t .

How much did Jeff have in the account after 3 years ?

A. $13,476.38
B. $3623.85
C. $3390.00
D. $9585.00

Answer 1

after 3 years, Jeff had B. $3623.85 in the account.

Answer 2

Option B - $3623.85

Explanation:

Given : Jeff invested $3000 in an account that earns 6.5% interest, compounded annually. The formula for compound interest is
`A=P(1+I)^t`.

To find : How much did Jeff have in the account after 3 years ?

Solution :

The formula for compound interest is
`A=P(1+I)^t`.

Where A is the amount

P is the principal = $3000

I is the interest = 6.5%=0.065

t is the time = 3 years

Substitute in the formula,

`A=3000(1+0.065)^3`

`A=3000(1.065)^3`

`A=3000(1.2079)`

`A=\$3623.85`

Therefore, Option B is correct.

The amount Jeff have in the account is $3623.85