Solve the problem. Round your answer to the nearest cent.
-Sumi Kato's savings account has a balance of $\$ 4241$. After 21 years what will the amount of interest be at $3.5 \%$ compounded annually?
A) $\$ 4498.92$
B) $\$ 4481.92$
C) $\$ 4492.92$
D) $\$ 8906.10$

Question

Quizplus · Accepted Answer

The formula for compound interest is A = P(1 + r/n)^(nt), where A is the final amount, P is the principal (initial amount), r is the annual interest rate, n is the number of times per year that the interest is compounded, and t is the number of years. In this case, P = 4241, r = 0.035, n = 1 (compounded annually), and t = 21. Plugging these values into the formula, we get A = 4241(1 + 0.035/1)^(1*21) = 4241(1.035)^21 = 4241(1.9592) = 8339.92. The amount of interest is A - P = 8339.92 - 4241 = 4498.92.

Solve the Problem $4241\$ 4241$4241 After 21 Years What Will the Amount of Interest

Solve the Problem $\$ 4241$ After 21 Years What Will the Amount of Interest