If you put $300 into an account paying 2 percent interest,what will be the value of this account in 4 years?
A)$320.69
B)$324.00
C)$324.73
D)$327.81

Question

Quizplus · Accepted Answer

We can use the formula A=P(1+r/n)^(nt), where A is the final amount, P is the principal (initial amount), r is the annual interest rate as a decimal, n is the number of times the interest is compounded per year, and t is the time in years. Plugging in the given values, we get A=300(1+0.02/1)^(1*4)=324.73, rounded to the nearest cent. Therefore, the best choice is C.

If You Put $300 into an Account Paying 2 Percent