Question

Lauren puts Rs. $600.00$ into an account to use for school expenses. The account earns $3\%$ interest, compounded annually. How much will be in the account after $6\frac{1}{2}$ years?

• A. $527.1$
• B. $627.1$
• C. $727.1$
• D. $827.1$

Answer 1

The correct option is C $727.1$

We know the formula,
$A=P{(1+\frac{r}{100})}^t$
Where,
$A=$ total amount
$P=$ principal or amount of money deposited,
$r=$ annual interest rate
$n=$ number of times compounded per year
$t=$ time in years
Given:
$P=$ Rs. $600,r=3\%$ and $t=$ $6\frac{1}{2}$ years
$A=600{(1+\frac{3}{100})}^{6.5}$
$A=600\times {1.03}^{6.5}$
$A=600\times 1.211831$
$A=$ Rs. $727.1$