Question

A deposit of $7,500 is made into a savings account which earns 5 3/8 % interest compounded annually . if no additional deposits or withdrawals are made, which amount is the total balance at the end of 6 years ?

a) $ 10,050.72
b $ 10,268.02
c) $ 10,415.06
d) $ 9,918.75

Answer 1

A=p(1+r)^t
r=(5+3/8)%=5.375%
A=7,500×(1+0.05375)^(6)
A=10,268.02