Angela invests $2,550 at 3% interest compounded annually. What will be the balance in the account after 1.5 years?

Question

A. $2,626.50
B. $2,664.75
C. $2,665.61
D. $4,792.50

Answer 1

What do you think the answer is?

Answer 2

Bal=P(1+r)^y where Bal is your balance, P is your principal, r is the interest rate per year, and y is the number of years. So:
Bal=2550(1.03)^1.5
Bal=$2665.61 ☺☺☺☺

Answer 3

thanks un! wanted to make sure my answer was correct :)

Answer 4

Thanks Un!

Answer 5

$2665.61