Mathematics: Find the balance in the account: $1,600 principal earning %7, compounded annually,after 3 years

An infinite series that is geometric. An infinite geometric series converges if its common ratio r satisfies –1 r 1. Otherwise it diverges....

Find the balance in the account: $1,600 principal

genyjoannerubiera

20.01.2022

Option C. $\$1,960.07$

Step-by-step explanation:

we know that

The compound interest formula is equal to

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

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

$t=3\ years\\ P=\$1,600\\ r=7\%=7/100=0.07\\n=1$

substitute in the formula above

$A=1,600(1+\frac{0.07}{1})^{1*3}$

$A=1,600(1.07)^{3}$

$A=\$1,960.07$

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