Assume that $800 is deposited in an account in which interest is compounded annually at a rate of 9%. Find the accumulated amount after 11 years.Round your answer to the nearest cent.
A)$2,064.34
B)$1,964.34
C)$2,164.74
D)$2,564.37
E)$2,314.36

Question

Quizplus · Accepted Answer

The formula for compound interest is $A = P(1 + r)^n$, where $A$ is the amount of money accumulated after n years, including interest, $P$ is the principal amount (the initial amount of money), $r$ is the annual interest rate (decimal), and $n$ is the number of years the money is deposited or borrowed for. Here, $P = $800$, $r = 9\% = 0.09$, and $n = 11$ years. Plugging these values into the formula gives $A = 800(1 + 0.09)^{11} = 800(1.09)^{11} ≈ $2,064.34$.

Assume That $800 Is Deposited in an Account in Which