Barry Newman's savings account has a balance of $\$ 1964$. After 10 years, what will the amount of interest be at $8 \%$ compounded annually?
A) $\$ 2276.13$
B) $\$ 2267.13$
C) $\$ 1571.20$
D) $\$ 2281.13$

Question

Quizplus · Accepted Answer

The correct answer is A because the amount of interest after 10 years at 8% compounded annually is $2276.13. This can be calculated using 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, n is the number of times per year that the interest is compounded, and t is the number of years. In this case, P = $1964, r = 8%, n = 1 (since the interest is compounded annually), and t = 10. Plugging these values into the formula, we get A = 1964(1 + 0.08/1)^(1*10) = $2276.13.

Barry Newman's Savings Account Has a Balance Of $1964\$ 1964$1964 After 10 Years, What Will the Amount of Interest

Barry Newman's Savings Account Has a Balance Of $\$ 1964$ After 10 Years, What Will the Amount of Interest