If $3,000 is compounded annually at 6.5% for 13 years, what is the future value?
A) $6,802.46
B) $6,806.47
C) $6,798.45
D) $5,535.00
E) $6,812.46

Question

Quizplus · Accepted Answer

This is a straightforward application of the compound interest formula $A=P(1+r)^t$, where $A$ is the future value, $P$ is the principal, $r$ is the annual interest rate as a decimal, and $t$ is the number of years. Plugging in the given values, we get $A=3000(1+0.065)^{13}\approx 6,802.46$, so the answer is A.

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