Question

How much compound interest is earned on $15,750 principal, with an annual interest rate of 2% compounded annually, over 3.5 years?

compound interest: A = P (1 + r)t



A.
$1130.34


B.
$16,852.50


C.
$1102.50


D.
$16,889.06

Answer 1

well if you multiply the original amount by .02 then times it by 3.5 and add that to the original amount, then that is your answer:
15,750x0.02=315
315x3.5=1102.50
15,750+1102.50=16,852.5