A principal of $5,350 is placed in an account that earns 3.5% interest. If the interest is compounded annually, how much money will be in the account at the end of 4 years?
Answer
A
$5,760.06
B
$5,537.25
C
$6,099.00
D
$6,139.25
Explanation
For annual compounding, use A = P(1 + r)^t. Substituting the values gives $5,350(1.035)^4 ≈ $6,139.25. The account will contain $6,139.25, which is choice D.
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