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The apr of rose's savings account is 4.2%, and interest is compounded monthly. if rose makes no additional deposits or withdrawals for an entire year, what will be the balance of her account after all the interest is paid for the year on a principal balance of $9100? a. $9482.20 b. $9138.29 c. $9489.64 d. $9138.22

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User Emaxi
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1 Answer

3 votes

The correct answer is option A : $9482.20. The balance of Rose's account after all the interest is paid for the year on a principle balance will be $9482.20.

To calculate the balance of Rose's savings account after one year, we can use the formula for compound interest: A = P(1 + r/n)^(nt).

Where:

  • A is the final amount in the account
  • P is the principal balance
  • r is the annual interest rate
  • n is the number of times the interest is compounded per year
  • t is the number of years

Plugging in the values for Rose's account : P = $9100, r = 4.2/100 = 0.042, n = 12 (compounded monthly), and t = 1 year :

A = $9100(1 + 0.042/12)^(12 * 1)

A ≈ $9482.20

Therefore, the balance of Rose's account after all the interest is paid for the year will be $9482.20.

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