Question 161707
The formula is:
{{{A = P*(1 + (r/n))^(nt)}}}
{{{P}}}= original amount
{{{A}}}= amount after {{{t}}} years
{{{r}}}= interest rate
{{{n}}}= number of times per year the interest is compounded
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{{{P = 3000}}}
{{{t = 10}}}
{{{n = 2}}}
{{{r = .12}}}
{{{A = 3000*(1 + (.12/2))^(2*10)}}}
{{{A = 3000*(1 + .06)^20}}}
{{{A = 3000*(1.06)^20}}}
{{{A = 3000*3.207}}}
{{{A = 9621.41}}}
Interest earned = {{{A - P}}}
{{{9621.41 - 3000 = 6621.41}}}
The answer is (b)