Solve the Problem. -Austin Invested $12,000 in an Account at 11% Compounded Quarterly

question 162

Multiple Choice

Solve the problem.
-Austin invested $12,000 in an account at 11% compounded quarterly. Find the amount in Austin's account after a period of 3 years.

• A) $4617.41
• B) $16,172.66
• C) $16,411.57
• D) $16,617.41

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Definitions:

Annual Interest Rate

The percentage of a sum of money charged for its use per year.

Compounded Continuously

A way of calculating interest where the frequency of compounding is so high that it is effectively continuous, leading to exponential growth.

Exponential Equation

An equation in which a variable appears in the exponent, showing the rate of growth or decay.

Exponential Model

A mathematical representation of a situation where growth or decay rate is proportional to the current value, leading to rapid increases or decreases.