Question

If you save $3,000 at an interest rate of 14 percent per year, how much will you have at the end of six years? The interest should be compounded. A. $5,805.96 B. $6,502.34 C. $6,584.91

Answer 1

C) 6584.91

Explanation:

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Answer 2

C.) $6,584.91

Explanation:

Amount earned in compound interest = P(1 + r)^n;

where P is the principal,

r is the rate and n is the number of periods.

Amount = 3,000(1 + 14%)^6 = 3,000(1 + 0.14)^6 = 3,000(1.14)^6 = $6,584.91