Question

Help me pls.........

Answer 1

The account balance will be $2,614.16 after 10 years ⇒ D

Explanation:

The formula for compound interest, including principal sum is:

`A=P(1+(r)/(n))^(nt)`, where

• A is the future value of the investment/loan, including interest

• P is the principal investment amount

• r is the annual interest rate (decimal)

• n is the number of times that interest is compounded per unit t

• t is the time the money is invested or borrowed for

Let us use this rule to solve the question

∵ Ted invests $1,077 in a savings account with a fixed annual interest

rat 9% compounded three times per year

∴ P = 1,077

∴ r = 9% =
`(9)/(100)` = 0.09

∴ n = 3 ⇒ three times per year

∵ The time is ten years

∴ t = 10

Substitute these values in the rule above to find A

∵
`A=1077(1+(0.09)/(3))^(3(10))`

→ Use your calculator to find the answer

∴ A = 2,614.161681

→ Round it to the nearest cent (2d.p.)

∴ A = $2,614.16

∴ The account balance will be $2,614.16 after 10 years.