Question

Suppose that $3500 is placed in an account that pays 16% interest compounded each year. Assume that no withdrawals are made from the account. Follow the instructions below. Do not do any rounding.​

Answer 1

after one year. To do an investment question, we need to use the following formula: A(t) = a(1 + r)t, where:
A(t) = amount after time
a = initial value, $3500
r = rate (as a decimal), 0.16
t = amount of time, 1