Assume that $1,400 is deposited in an account in which interest is compounded annually at a rate of 8%.Find the accumulated amount after 2 years rounded to the nearest cent.
A)$1,532.96
B)$1,582.96
C)$1,632.96
D)$2,032.96
E)$1,732.96

Question

Quizplus · Accepted Answer

Using the formula for compound interest, the accumulated amount after 2 years is:

$1,400*(1+0.08)^2 = $1,632.96

Rounding to the nearest cent gives us:

$1,632.96 ≈ $1,632.95

The closest answer choice is C, which is $1,632.96.

Assume That $1,400 Is Deposited in an Account in Which