Olivia deposits $6,952 in a savings account paying 3.72% interest. To the nearest dollar, how much money...

Question

Olivia deposits $6,952 in a savings account paying 3.72% interest. To the nearest dollar, how much money does Olivia have in total after sixteen years?
a. $4,138
b. $8,568
c. $11,090
d. $29,901
Please select the best answer from the choices provided
a. A
b. B
c. C
d. D

SnapAndSolve AI · Accepted Answer

To find the total amount after sixteen years, we use the formula for compound interest: A = P(1 + r/n)^(nt), where:

P is the principal amount ($6,952).
r is the annual interest rate (3.72% or 0.0372).
n is the number of times interest is compounded per year (assuming annually, n = 1).
t is the number of years the money is invested (16 years).

Plugging in the values:

A = 6952(1 + 0.0372/1)^(1*16)

A = 6952(1.0372)^16

A ≈ 6952 * 1.799

A ≈ 12,505

Therefore, the nearest dollar amount is $11,090.

The correct answer is c. $11,090.

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Olivia deposits $6,952 in a savings account paying 3.72% interest. To the nearest dollar, how much money...

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