NobleWho
contestada

Use the compound interest formula, A = P(1 + r/n)^nt, to find the following amount of money after the given amount of time:

Blake opens a savings account in a bank with an annual interest rate of 2.7%. If he deposits $3,500.00 in a savings account and the interest is compounded annually, how much will he have in the account after 3 years?

A.
$3,783.50

B.
$3,791.22

C.
$7,169.34

D.
$7,285.50

A store credit card charges an APR of 12% that is compounded once a month. What is the APY for the credit line?

A.
12.12%

B.
12.34%

C.
12.52%

D.
12.68%

Respuesta :

The amount and APY are $3791.22 and 12.68%.

Compound interest

Compound interest is the interest on a loan or deposit calculated based on the initial principal and the accumulated interest from the previous period.

Given

Rate (r) = 2.7%

Principal (P) = $3,500

Time (t) = 3 years

To find

The compound interest.

How do find the compound interest?

We know the formula  of compound interest,

[tex]\rm Amount = Principal (1 + \dfrac{Rate}{100})^{time}[/tex]

Then put the values,

[tex]\rm Amount = 3500(1 + \dfrac{2.7}{100})^{3}\\\\\rm Amount = 3500(1.027)^{3}\\\\Amount = 3791.22[/tex]

Then the amount and APY are $3791.22 and 12.68%.

More about the compound interest link is given below.

https://brainly.com/question/25857212

Otras preguntas