Solve the Problem $A = P \left( 1 + \frac { r } { n } \right) ^ { n t }$

question 359

Multiple Choice

Solve the problem.
-Find the amount in a savings account at the end of 7 years if the amount originally deposited is $3,000 and the interest rate is 5.5% compounded quarterly. Use: $A = P \left( 1 + \frac { r } { n } \right) ^ { n t }$ where:
$\mathrm { A } =$ final amount
$\mathrm { P } = \$ 3,000$ (the initial deposit)
$\mathrm { r } = 5.5 \% = 0.055$ (the annual rate of interest)
$\mathrm { n } = 4$ (the number of times interest is compounded each year)
$t = 7$ (the duration of the deposit in years)

• A) \(\$ 85,155.00\)
• B) \(\$ 4,397.29\)
• C) \(\$ 3,300.94\)
• D) \(\$ 4,837.02\)

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Definitions:

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