Question

Can someone help me with this question? Thanks!

How much compound interest will an account of $12,000 bear after 6 years at 3.2% APR, compounded annually? (Hint: Use the formula for annual compound interest.) $2,496.38
$14,496.38
$1,896.38
$496.38

Answer 1

Total = Principal * (1 + rate)^years
Total = 12,000 * (1.032)^6
Total = 12,000 * 1.208031291
Total = 14,496.38