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 3 years. Round to the nearest cent.
A)$1,106.38
B)$1,101.03
C)$1,164.63
D)$1,141.78
E)$1,187.48

Question

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 3 years. Round to the nearest cent.
A)$1,106.38
B)$1,101.03
C)$1,164.63
D)$1,141.78
E)$1,187.48
​

Quizplus · Accepted Answer

The future value of an annuity formula is used: $FV = P \times \frac{(1 + r)^n - 1}{r}$, where $P = 350$, $r = 0.085$, and $n = 3$. Calculating gives $FV = 350 \times \frac{(1 + 0.085)^3 - 1}{0.085} = 1,141.78$.

Assume That $350\$ 350$350 Is Deposited at the End of Each Year into an Each

Assume That $\$ 350$ Is Deposited at the End of Each Year into an Each