If you save $3,000 at an interest rate of 14 percent per year, how much will you have at the end of six years? The interest should be compounded. A. $5,805.96 B. $6,502.34 C. $6,584.91

Question

Kendall Frye

Mathematics

2 January, 04:08

If you save $3,000 at an interest rate of 14 percent per year, how much will you have at the end of six years? The interest should be compounded. A. $5,805.96 B. $6,502.34 C. $6,584.91

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Julius Weeks · Answer 1

C.) $6,584.91

Step-by-step explanation:

Amount earned in compound interest = P (1 + r) ^n;

where P is the principal,

r is the rate and n is the number of periods.

Amount = 3,000 (1 + 14%) ^6 = 3,000 (1 + 0.14) ^6 = 3,000 (1.14) ^6 = $6,584.91