Question

Someone please help me with this. vvv

At the beginning of year 1, Zack invests $700 at an annual compound interest rate of 3%. He makes no deposits to or withdrawals from the account.Which explicit formula can be used to find the account’s balance at the beginning of year 5? What is the balance?

A. A(n) = 700 + (0.003 • 700)(n – 1); $719.45
B. A(n) = 700 + (n – 1)(0.03 • 700); $784.00
C. A(n) = 700 • (1 + 0.03)n; $811.49
D. A(n) = 700 • (1 + 0.03)(n – 1); $787.8

Answer 1

The answer is D

Explanation:

Answer 2

The formula is
A (n) = 700 • (1 + 0.03)^(n – 1)
Where n is 5 years
A (5) = 700 • (1 + 0.03)^(5 – 1)
A (5) = 700 • (1 + 0.03)^(4)
So the account balance at the beginning of 5 years or at the end of 4 years is
A (5)=700×(1+0.03)^(4)
A (5)=787.8

The answer is D

Hope it helps!