Solve the problem. Round to the nearest cent.
-Barry Newman's savings account has a balance of $\$ 4779$. After 11 years, what will the amount of interest be at $4 \%$ compounded annually?
A) $\$ 2569.05$
B) $\$ 1911.60$
C) $\$ 2583.05$
D) $\$ 2578.05$

Question

Quizplus · Accepted Answer

The formula for compound interest is $ A = P(1 + r/n)^{nt} $. Here, $ P = 4779 $, $ r = 0.04 $, $ n = 1 $, and $ t = 11 $. Calculate $ A $ and subtract the principal to find the interest: $ A = 4779(1 + 0.04/1)^{1 \times 11} \approx 7357.05 $. The interest is $ 7357.05 - 4779 = 2578.05 $.

Solve the Problem $4779\$ 4779$4779 After 11 Years, What Will the Amount of Interest

Solve the Problem $\$ 4779$ After 11 Years, What Will the Amount of Interest