Question

Emily invested $6500 at 3% interest compounded annually.

How much interest will she earn in 5 years?

A.
$975.00

B.
$1035.28

C.
$7475.00

D.
$7535.28

Answer 1

Again we need to use the compound interest formula:

\[A = P(1+\frac{ r}{ n })^{nt}\]

Answer 2

C?

Answer 3

\[6,500(1+\frac{ 0.03 }{ 1 })^{1*5} = 7535.28\]