Use the compound interest formula to compute the total amount accumulated.
-$4000 for 3 years at 2% compounded annually
A) $4240.00
B) $4244.83
C) $4160.00
D) $4161.60

Question

Quizplus · Accepted Answer

The compound interest formula is A = P(1 + r/n)^(nt). Here, P = 4000, r = 0.02, n = 1, t = 3. Plugging in these values, A = 4000(1 + 0.02/1)^(1*3) = 4000(1.02)^3 = 4244.83.

Use the Compound Interest Formula to Compute the Total Amount