Solve the problem. Round to the nearest cent as needed.
-Samantha's savings account has a balance of $4643. After 25 years, what will the amount of interest be at 6% compounded annually?
A) $15,289.16
B) $15,275.16
C) $15,284.16
D) $2785.80

Question

Quizplus · Accepted Answer

We can use the formula A=P(1+r/n)^(nt) where A is the final amount, P is the initial principal, r is the annual interest rate, n is the number of times compounded per year, and t is the time in years. Plugging in the values, we get A = 4643(1+0.06/1)^(1*25) = $15,284.16 when rounded to the nearest cent. Therefore, the answer is choice C. We can use the formula A=P(1+r/n)^(nt) where A is the final amount, P is the initial balance, r is the interest rate, n is the number of times compounded per year, and t is the number of years. Plugging in the values, we get:
A = 4643(1+0.06/1)^(1*25)
A = $15,284.16 (rounded to the nearest cent) 
Therefore, the correct answer is C.

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