Question

The compound interest formula is A = P(1 +mwhere P is the principal, A is the ending amount,is the annual interest rate, m is the number ofcompounding periods, and t is the number of yearBilly invested $8, 000 in a savings account paying3.5 % interest, compounded monthly. How muchwill Billy have after 12 years?O $12, 168.25O $10,361.14O $8,280O $11,360

Answer 1

Given the formula

$A=P\left(1+\frac{r}{m}\right)^t$

where

P=8000

r=3.5%=0.035

m=12

t=12

then

$A=8000(1+\frac{0.035}{12})^{12}$$A=8000(1.00291)^{12}$$A=8280,5356$

correct answer option C