41.1k views
6 votes
An investment of 11,000 is made into an account that earns 4.25% annual compound interest for 30 months. Assuming no other deposits or withdrawal are made, what is the total value of the account after 30 months?

A: $12,206.27

B: $13,412.54

C: 11,000

D: 1,206.27​

User Mike Kale
by
7.3k points

1 Answer

4 votes

Answer:

It should be $12168.75

Explanation:

First, converting R percent to r a decimal

r = R/100 = 4.25%/100 = 0.0425 per year,

then, solving our equation

I = 11000 × 0.0425 × 2.5 = 1168.75

I = $ 1,168.75

The simple interest accumulated

on a principal of $ 11,000.00

at a rate of 4.25% per year

for 2.5 years is $ 1,168.75.

1,168.75 + 11000 = 12168.75

User Tautologe
by
7.2k points

No related questions found

Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

9.4m questions

12.2m answers

Categories