An $8000 bank deposit earning compound interest of 8.21% per annum grows to _______ in 5.25 years.
A) $11 284.00
B) $12 058.14
C) $12 105.81
D) $16 019.15

Question

Quizplus · Accepted Answer

Using the compound interest formula, the amount after 5.25 years is:

A = P(1 + r/n)^(nt)
A = 8000(1 + 0.0821/1)^(1*5.25)
A = $12,105.81 (rounded to the nearest cent)

Therefore, the answer is choice C, $12,105.81.

An $8000 Bank Deposit Earning Compound Interest of 8