Question

For the investment with interest compounded annually, find the final balance using the formula A = P(1 + r)t.

$600 for 4 years at 5%

A.
$120

B.
$129.30

C.
$720

D.
$729.30

Answer 1

A=P(1+r)^t

A=amount
P=presnne amount
R=rate
T=time in years

P=600
T=4
R=5%=0.05

A=600(1+0.05)^4
A=600(1.05)^4
A=729.304

D is answer