Answer:
$276.26
Step-by-step explanation:
We have been given the principal amount as 250 dollars and rate of interest as 2.5%. Furthermore, we are given that interest is compounded monthly and we are required to find the future value after 4 years.
Therefore, we will use compound interest formula:
[tex]A=P(1+\frac{r}{n})^{nT}[/tex]
Where, we have
[tex]P = 250, r = 0.025, n = 12, T = 4[/tex]
Thus, upon substituting these values in the formula, we get:
[tex]A=250(1+\frac{0.025}{12})^{12\cdot 4}\\A=250(1+0.002083333)^{48}\\A=250(1.002083333)^{48}\\A=250\cdot 1.10505596A=276.26[/tex]
Therefore, she will have $276.26 in her account after 4 years.
Answer:
Option D is correct.
Money she wil have after four years, $276.26
Step-by-step explanation:
As per the statement:
Principal(P) =$ 250 , Annual interest Rate(r) = 2.5% and Time(t) = 4 years.
Also, n = 12
To find how much money will she have after 4 years.
The formula for amount is given by:
[tex]A = P(1+\frac{r}{100n})^{nt}[/tex] ......[1]
where
A represents the Amount
P represents the Principal
r represents the annual rate of interest.
and t represents the time in years.
Substitute the given values in [1] we get;
[tex]A = 250(1+\frac{2.5}{12 \cdot 100})^4\cdot 12[/tex]
[tex]A = 250(1+0.00208333333)^48[/tex]
or
[tex]A = 250(1.00208333)^48[/tex]
Simplify:
A= $276.26
Therefore, $276.26 money will she have after 4 years
