Determine the balance A ( to the nearest cent)for P=3,000 dollars invested at a rate r=10% for t=10 , compounded one time per year. Round the answer to two decimal places.
A)$33,000.00
B)$4,781.23
C)$3,000.00
D)$6,000.00
E)$7,781.23

Question

Quizplus · Accepted Answer

The formula for compound interest is A = P(1 + r/n)^(nt). Here, P = 3000, r = 0.10, n = 1, and t = 10. Plugging in these values, A = 3000(1 + 0.10/1)^(1*10) = 3000(1.10)^10 = 3000 * 2.59374 = 7,781.23.

Determine the Balance a ( to the Nearest Cent)for P=3,000