Question

(100 POINTS!!!!!) DO NOT GIVE ME THE ANSWER!
Please just explain HOW I can get the answer

Answer 1

• B. $3281.48

Explanation:

Use compound interest formula

• A = P(1 + r)^(nt), where A- future amount, P - invested amount, r- interest rate, t- time, n- number of compounds per year

Given:

• P = $2975
• r = 4% = 0.04
• t = 2.5 years
• n = 1

Substitute the values and calculate:

• A = 2975(1 + 0.04)^2.5 = 3281.48

Correct choice is B