Question

Laura goes to a bank and opens a new account . She deposits $5,500. • The bank pays 1.6% interest compounded annually on this account • Laura makes no additional deposits or withdrawals. Which amount is the closest to the account balance at the end of 4 years? O A.$5,852.00

B. $5,860.53
C.$5,940.00
D.$5,954.31 $​

Answer 1

B

Explanation:

formula= principal (1+(rate÷100))^number of years

5500(1+(1.6÷100))^4

5500 (1+0.016)^4

5500(1.016)^4

5500 (1.06555245)

5,860.53

$5,860.53