Question

An investment of 8,500 has an annual interest rate of 6.6%...... (Continues in screenshot) (please explain)

Answer 1

C) A = 8500(1.0165)^16

Explanation:

A = P(1 + r/n)^nt where 'n' is # times compounded and 't' is time in years

A = 8500(1 + (.066/4))^4·4

A = 8500(1 + 0.0165)^16