Final answer:
The total amount after 3 years of compounding $6000 at an annual interest rate of 10% would be closest to $7900, represented by option c in the multiple-choice answers.
Step-by-step explanation:
The student asked how much the total amount would be after 3 years if $6000 is invested in an account with 10% interest compounded annually. To solve this, we will use the formula for compound interest, which is A = P(1 + r/n)^(nt), where:
- P is the principal amount ($6000)
- r is the annual interest rate (0.10)
- n is the number of times interest is compounded per year (1 for annually)
- t is the time in years (3)
Plugging in the values:
A = $6000(1 + 0.10/1)^(1*3)
A = $6000(1 + 0.10)^3
A = $6000(1.10)^3
A = $6000 * 1.331
A = $7986
Hence, the total amount after 3 years will be closest to $7900, which is option c.