22
QuizMultiple Choice

N/A — Exam

Question 22 • Advanced Financial Algebra

Zayna deposited $⁢1,500 into a savings account with a 4% interest that compounds annually. She wants to know how much her investment will grow after 10 years. Which formula is correct?

Answer
A
A=1500×(1+101)1×4
B
A=1500×(1+0.041)1×10
C
A=1500×(1+0.11)1×4
D
A=1500×(1+41)1×10

Explanation

Use the compound-interest formula A = P(1 + r/n)^(nt), where P = 1500, r = 0.04, t = 10, and n = 1 because interest compounds annually. Substituting gives A = 1500(1 + 0.04/1)^(1×10), which matches choice B, the formula with a 4% annual rate compounded once each year for 10 years.

AI-written and checked against the verified answer.

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