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

Question

(1 point)
$2,626.50 $3,635.69 $2,665.61 $4,792.50

Answer 1

To solve this problem, we can use the formula for compound interest:

A = P(1 + r/n)^(nt)

Where:
A = the final amount
P = the principal (initial amount)
r = the annual interest rate (as a decimal)
n = the number of times the interest is compounded per year
t = the time (in years)

In this case, we have:
P = $2,550
r = 0.03 (3% as a decimal)
n = 1 (compounded annually)
t = 1.5 years

Plugging these values into the formula, we get:

A = $2,550(1 + 0.03/1)^(1*1.5)
A = $2,665.61

Therefore, the balance in the account after 1.5 years will be $2,665.61.

The answer is option C: $2,665.61.