Question

Mr. Garcia deposited $2,500 in a new account at his bank.

The bank pays 6.5% interest compounded annually on this account.
Mr. Garcia makes no additional deposits or withdrawals.


Which amount is closest to the balance of the account at the end of 2 years?

A.$2,513.00

B.$2,662.50

C.$2,835.56

D.$2,825.00

Answer 1

$2,825.00

Explanation:

First, I found out what 6.5% of 2,500 is, so 6.5% x 2,500 = 162.5 . Then I did 162.5 x 2, which equals 325. I then added 325 to 2,500 and got 2,825.