Mary Fagan invested $6,500 in a bank account that pays interest at the rate of 8% compounded annually.If Fagan makes no withdrawals,the account balance after 5 years will be:

Question

Quizplus · Accepted Answer

The correct answer is A because the account balance after 5 years will be $9,550.45. This is calculated using the formula A = P(1 + r/n)^(nt), where P is the principal 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 = $6,500, r = 8%, n = 1 (since the interest is compounded annually), and t = 5. Plugging these values into the formula, we get A = $9,550.45.

Mary Fagan Invested $6,500 in a Bank Account That Pays