Determine the balance A ( to the nearest cent)for P=2,500 dollars invested at a rate r=9.5% for t=10 , compounded 4 times per year. Round the answer to two decimal places.
A)$3,161.40
B)$12,000.00
C)$12,645.59
D)$94,298.50
E)$6,392.88

Question

Quizplus · Accepted Answer

The formula for compound interest is A = P(1 + r/n)^(nt). Here, P = 2500, r = 0.095, n = 4, and t = 10. Plugging in these values, A = 2500(1 + 0.095/4)^(4*10) = 2500(1.02375)^40 ≈ 6392.88.

Determine the Balance a ( to the Nearest Cent)for P=2,500