If you deposit $900 into an account for two years and the interest rate is 4%,how much do you have at the end of the two years?
A)$972.00
B)$973.44
C)$974.19
D)None of the above is correct.

Question

Quizplus · Accepted Answer

Using the formula for compound interest, we have:

A = P(1 + r/n)^(nt)

where 
A is the amount at the end of the time period
P is the principal amount (initial investment)
r is the annual interest rate
n is the number of times the interest is compounded per year
t is the time period in years

Substituting the given values, we get:

A = 900(1 + 0.04/12)^(12*2)
A = $973.44 (rounded to two decimal places)

Therefore, the correct answer is B.

If You Deposit $900 into an Account for Two Years