Question

question
3400 dollars is placed in an account with an annual interest rate of 7.5%. how much will be in the account after 17 years, to the nearest cent?
answer attempt 1 out of 2
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Explanation:

Step1: Identify compound interest formula

Assuming annual compounding (standard for such problems), the formula is:
$$A = P(1 + r)^t$$
Where:

• $A$ = final amount
• $P = 3400$ (principal)
• $r = 0.075$ (annual interest rate)
• $t = 17$ (time in years)

Step2: Substitute values into formula

$$A = 3400(1 + 0.075)^{17}$$

Step3: Calculate the growth factor

First compute $1.075^{17} \approx 3.497608$

Step4: Multiply by principal

$$A = 3400 \times 3.497608 \approx 11891.87$$

Answer:

11891.87 dollars