Answer:
$3827.00
Explanation:
To calculate the total compound amount at the end of six years with an interest rate of 1.5% compounded annually, we can use the formula for compound interest:
A = P * (1 + r/n)^(n*t)
Where:
A = Total compound amount
P = Principal amount (initial investment)
r = Annual interest rate (as a decimal)
n = Number of times interest is compounded per year
t = Number of years
In this case:
P = $3500
r = 1.5% = 0.015 (as a decimal)
n = 1 (compounded annually)
t = 6 years
Substituting these values into the formula, we have:
A = 3500 * (1 + 0.015/1)^(1*6)
Calculating this expression, we get:
A ≈ 3500 * (1.015)^6 ≈ 3500 * 1.093717 ≈ 3827.00
Rounding the total compound amount to 2 decimal places, the final value is approximately $3827.00