If the value of the principal today is $10,250 and the interest rate is 1.5%,what is the value of the principal at the end of three years?
A)$10,540.45
B)$10,718.20
C)$10,900.35
D)$12,245.45
E)$12,234.43

Question

Quizplus · Accepted Answer

The value of the principal at the end of three years can be calculated using the formula for compound interest: $A = P(1 + r)^n$, where $A$ is the amount of money accumulated after n years, including interest, $P$ is the principal amount, $r$ is the annual interest rate (decimal), and $n$ is the number of years the money is invested for. Given $P = \$10,250$, $r = 1.5\% = 0.015$, and $n = 3$, we calculate $A = \$10,250(1 + 0.015)^3$, which gives us approximately \$10,718.20.

If the Value of the Principal Today Is $10,250 and the Interest