Question

Jose invests $3, 250 at 6% interest compounded annually. What will be the balance in the account after 3.5 years?

Answer 1

Trick question?

Since the compounding is annually, the amount at 3.5 years is the same as it was after 3 years

amount = 3250(1.06)^3
= 3870.80

Answer 2

I understand, but now that answer isn't one of my choices?

$3932.50
$3985.23
$4752.00
$5200.00

Answer 3

Proof of my answer:
now ----- 3250
end of 1st year: 3250(1.06) = 3445
end of 2nd year: 3445(1.06) = 3651.70
end of 3rd year: 3641.70(1.06) = 3870.80 >> as I had before

suppose they did
3250(1.06)3.5 = 3985.23 which is one of the choices, BUT contradicts the concept of "compounded annually"

They are wrong!

Answer 4

I found out what I was doing wrong. I was not multiplying 1.06 to the power of 3.5. And that through me off. Wayyyy off.

Answer 5

This is since 2014, we are now in 2022!!! IT'S BEEN 6 YEARS THAT THIS QUESTION HAS NOT BEEN ANSWERED!!!

Answer 6

anyone who reads this must like for i am THE ONE hiding in your closet, im watching

Answer 7

now we know why people have serious problems these days -_-