14
QuizMultiple Choice

Modeling with Exponential and Logarithmic Equations — Quiz

Question 14 • Mathematics III

Isabel deposits 6 dollars comma 000 into an account that earns 1 point 5 percent interest compounded monthly. Assuming no more deposits and no withdrawals are made, how much money is in the account after 4 years? Compound interest formula: cap v times t is equal to cap p times open paren 1 plus r over n close paren raised to the n t power t is equal to years since initial deposit n is equal to number of times compounded per year r is equal to annual interest rate (as a decimal) cap p is equal to initial (principal) investment cap v times t is equal to value of investment after t years

Answer
A
6 dollars comma 360 point 0 0
B
10 dollars comma 892 point 1 3
C
7 dollars comma 180 point 8 9
D
6 dollars comma 370 point 7 8

Explanation

Use the compound interest formula with P = 6,000, r = 0.015, n = 12, and t = 4. This gives 6,000(1 + 0.015/12)^(12 × 4) ≈ $6,370.78. Therefore, the account will contain about $6,370.78 after 4 years, which is choice A.

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