MEDAL!

Calculate the balance after five years for the following account.
Account balance: $500.00
Interest: 4.95%
Type of Account: Compound Interest
A. $524.75
B. $623.75
C. $636.63
D. $995.63

Question

MEDAL!

Calculate the balance after five years for the following account.
Account balance: $500.00 
Interest: 4.95% 
Type of Account: Compound Interest
	A.	$524.75
	B.	$623.75
	C.	$636.63
	D.	$995.63

anonymous · Answer

@SolomonZelman  wouldnt my answer be C?

solomonzelman · Answer

I was disconnected, sorry.

anonymous · Answer

its okay, do you agree with my answer?

solomonzelman · Answer

how many times per year is the interest compound?

anonymous · Answer

5 years

solomonzelman · Answer

No, how many times per year is it compound?

solomonzelman · Answer

PER YEAR

anonymous · Answer

365 right?

solomonzelman · Answer

is it compound each day?

solomonzelman · Answer

idk, the question only says it is compound, does it mean continuous, instead of compound?

solomonzelman · Answer

the question doesn't tell me how many times per year is it compound

anonymous · Answer

Yea, im thinking so. I think you see how much 4.95% is of 500.00, and then divide it out.

anonymous · Answer

Okay, what I did was I took 4.95% of 500.00 and then I got 24.75 so then i took 500+24.75 and got 524.75. do you think thats the correct way of doing it?

solomonzelman · Answer

Ok, assuming the interest is taken once per year.

anonymous · Answer

would you then agree with A? @AllTehMaffs

solomonzelman · Answer

|dw:1384367864980:dw|