Question

41) Gabriella invests $8,193 in a retirement
account with a fixed annual interest rate of
8% compounded 6 times per year. What
will the account balance be after 18 years?
A) $31,340.53 B) $37,085.87
C) $34,252.67 D) $40,729.29
​

Answer 1

Answer:

Option C. $\ 34,252.67$  

Step-by-step explanation:

we know that    

The compound interest formula is equal to  

$A=P(1+\frac{r}{n})^{nt}$  

where  

A is the Final Investment Value  

P is the Principal amount of money to be invested  

r is the rate of interest  in decimal

t is Number of Time Periods  

n is the number of times interest is compounded per year

in this problem we have  

$t=18\ years\\ P=\ 8,193\\ r=0.08\\n=6$  

substitute in the formula above  

$A=\ 8,193(1+\frac{0.08}{6})^{6*18}=\ 34,252.67$