Find the accumulated amount A if the principal P = $3,000 is invested at the interest rate of r = 6% per year for t = 4 years, compounded annually.
A) The accumulated amount is $3,116.19.
B) The accumulated amount is $3,430.31.
C) The accumulated amount is $3,787.43.
D) The accumulated amount is $3,915.58.

Question

Find the accumulated amount A if the principal P = $3,000 is invested at the interest rate of r = 6% per year for t = 4 years, compounded annually. ​
A) The accumulated amount is $3,116.19.
B) The accumulated amount is $3,430.31.
C) The accumulated amount is $3,787.43.
D) The accumulated amount is $3,915.58.

Quizplus · Accepted Answer

The formula for compound interest is A = P(1 + r/n)^(nt). Here, P = $3,000, r = 0.06, n = 1, and t = 4. Plugging in these values, A = 3000(1 + 0.06/1)^(1*4) = 3000(1.06)^4 = $3,787.43.

Find the Accumulated Amount a If the Principal P =