Question

hannah has deposited $742 in a savings account that earns interest at a rate of 3.9% compounded twice a year. what will the account balance be in 11 years?
a. $770.94
b. $1721.65
c. $1134.81
d. $2893.80

Answer 1

Answer:

Option c. $1134.81

Step-by-step explanation:

Hannah has deposited $742 in a savings account that earns interest at a rate of 3.9% compounded twice a year.

compound interest equation :

$A=P(1+\frac{r}{n})^{n(t)}$

Where A = Future Amount

           P = Principal amount ($742)

           r = rate of interest 3.9% ( 0.039)

           n = number of compounding in a year ( 2)

           t = time in years ( 11 years)

$A=742(1+\frac{0.039}{2})^{2(11)}$

$A=742(1+0.0195)^{22}$

$A=742(1.0195)^{22}$

A = 742 ( 1.52939287)

A = 1,134.80951 ≈ $1,134.81

Option c. $1134.81