Annette opened a compound interest savings account with $7000 in principal and an interest rate of 2.5%. If interest is compounded annually, how much is in the account after 8 years?
interest compounded quarterly: A = P (1 + r)t

A.
$8544.50

B.
$8528.82

C.
$1544.50

D.
$1528.82

Question

Annette opened a compound interest savings account with $7000 in principal and an interest rate of 2.5%. If interest is compounded annually, how much is in the account after 8 years?
interest compounded quarterly: A = P (1 + r)t
 
 A.
$8544.50
 
 B.
$8528.82
 
 C.
$1544.50
 
 D.
$1528.82

kropot72 · Answer

The question has two different compounding periods. The first period mentioned is "annually" and the second to be mentioned is "quarterly".
Please clarify the question.

anonymous · Answer

it doesnt say......

kropot72 · Answer

Well, there will be two different answers depending on which compounding period is used. I suggest that you ask your teacher to clarify the question.