Question

Ronnie invested $1500 in an account that earns 3.5% interest, compounded annually. The formula for compound interest is A(t) = P{(1 + i)^t}A(t)=P(1+i) t . How much did Ronnie have in the account after 4 years?

Answer 1

B

Explanation:

A= New amount

P= Principal or Original amount which is £1500

I= Interest

t= time period

3.5% as a decimal is 3.5÷100=0.035

time period= 4 years

so 1500(1+0.035)^4 = B