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1 If $5000 is put into a savings account that pays
3.5% interest compounded monthly, how much
money, to the nearest ten cents, would be in that
account after 6 years, assuming no money was added
or withdrawn?
1) $5177.80
2) $5941.30
3) $6146.30
4) $6166.50

Respuesta :

Answer:

$5,177.80 would be the remaining amount of money left in the saving account after 6 years assuming there were no deposits or withdraws.

Step-by-step explanation:

Assuming that no money was added or withdrawn, after 6 years there would be $6166.50 in the savings account.

What is compound interest?

Compound interest is the interest that is added to the principal sum and the accumulated interest so far.

How to find the total amount after compound interest?

The amount after adding compound interest can be found using the following formula:

A = P(1 + r/(100*k))^nk

Where:

  • A is the amount,
  • P is the principal,
  • r is the rate of interest,
  • k is the compounding period,
  • and n is the number of years.

We can find the compounded amount as follows:

A = $5000(1 + 0.035/12)^(6*12)

= $5000*1.233301

≈ $6166.50.

Therefore, we have found that after 6 years there would be $6166.50 in the savings account. The correct answer is option D.

Learn more about compound interest here: https://brainly.com/question/24924853

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