22.2k views
5 votes
What is the answer to this question, A, B, C, or D? Explain

What is the answer to this question, A, B, C, or D? Explain-example-1
User Swahnee
by
7.9k points

1 Answer

3 votes

Answer:

B. $2253.65

Explanation:

Use the formula for compound interest.

F = P(1 + r/n)^(nt)

F = future value

P = present value

r = interest rate (written as decimal)

n = number of times interest is compounded each year

t = number of years

F = unknown

P = $2000

r = 4% = 0.04

n = 4

t = 3

F = $2000(1 + 0.04/4)^(4 × 3)

F = $2253.65

User Mingus
by
8.3k points

No related questions found

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