Determine the balance A ( to the nearest cent)for P=500 dollars invested at a rate r=7% for t=10 , compounded 12 times per year. Round the answer to two decimal places.
A)$529.94
B)$4,700.00
C)$1,126.10
D)$1,004.83
E)$6,359.33

Question

Quizplus · Accepted Answer

Use the formula $A=P\left(1+\frac{r}{n}ight)^{nt}$, where $P=500$, $r=0.07$, $n=12$, and $t=10$. Plugging in the values, we get $A=500\left(1+\frac{0.07}{12}ight)^{120}\approx1004.83$. Rounding to the nearest cent gives us $\boxed{	extbf{(D)}\ 1004.83}$.

Determine the Balance a ( to the Nearest Cent)for P=500