Assume that $150 is deposited at the end of each year in an account in which interest is compounded annually at a rate of 6%.Find the accumulated amount after 13 years.Round to the nearest cent.
A)$2,832.32
B)$4,720.54
C)$2,982.32
D)$6,258.75
E)$6,608.75

Question

Quizplus · Accepted Answer

The correct answer is A because the accumulated amount after 13 years is $2,832.32. 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 = $150, r = 6%, n = 1 (since interest is compounded annually), and t = 13. Plugging these values into the formula, we get A = $150(1 + 0.06/1)^(1*13) = $2,832.32.

Assume That $150 Is Deposited at the End of Each