Assume that $350 is deposited at the end of each year into an account in which interest is compounded annually at a rate of 8.5%.Find the accumulated amount after 7 years.Round to the nearest cent.
A)$3,171.17
B)$3,131.37
C)$3,184.27
D)$3,154.72
E)$3,177.72

Question

Quizplus · Accepted Answer

The correct answer is A.The accumulated amount after 7 years is $3,171.17. This can be calculated using the formula A = P(1 + r/n)^(nt), where P is the principal (the amount deposited each year), r is the annual interest rate, n is the number of times per year that interest is compounded, and t is the number of years. In this case, P = $350, r = 8.5%, n = 1 (since interest is compounded annually), and t = 7. Plugging these values into the formula, we get A = $350(1 + 0.085/1)^(1*7) = $3,171.17.

Assume That $350 Is Deposited at the End of Each