Find the compound amount for the deposit. Round to the nearest cent.
-$\$ 7100$ at $4.6 \%$ compounded annually for 3 years.
A) $\$ 8499.34$
B) $\$ 8125.56$
C) $\$ 7426.60$
D) $\$ 8079.80$

Question

Quizplus · Accepted Answer

The compound amount can be calculated using the formula $A = P(1 + \frac{r}{n})^{nt}$, where $A$ is the amount, $P$ is the principal amount (\$7100), $r$ is the annual interest rate (4.6% or 0.046), $n$ is the number of times the interest is compounded per year (1 for annually), and $t$ is the time the money is invested for (3 years). Plugging in the values: $A = 7100(1 + \frac{0.046}{1})^{1*3} = 7100(1.046)^3 = \$8125.56$.

Find the Compound Amount for the Deposit $7100\$ 7100$7100 At 4.6%4.6 \%4.6%

Find the Compound Amount for the Deposit $\$ 7100$ At $4.6 \%$