41) Gabriella invests $8,193 in a retirementaccount with a fixed annual interest rate of8% compounded 6 times per year. Whatwill the account balance be after 18 years?A) $31,340.53 B) $37,085.87C) $34,252.67 D) $40,729.29
Accepted Solution
A:
Answer:Option C. [tex]\$34,252.67[/tex] Step-by-step explanation:we know that The compound interest formula is equal to [tex]A=P(1+\frac{r}{n})^{nt}[/tex] where A is the Final Investment Value P is the Principal amount of money to be invested r is the rate of interest in decimal
t is Number of Time Periods n is the number of times interest is compounded per year
in this problem we have [tex]t=18\ years\\ P=\$8,193\\ r=0.08\\n=6[/tex] substitute in the formula above [tex]A=\$8,193(1+\frac{0.08}{6})^{6*18}=\$34,252.67[/tex]