How much compound interest will an account of $12,000 bear after 6 years at 3.2% APR, compounded annually? (Hint: Use the formula for annual compound interest.) $2,496.38 $14,496.38 $1,896.38 $496.38 SAVE AND EXIT
The formula for compound interest is A = P(1 + r/n)^tn where A = Amount after interest P = Amount of principle r = interest rate n = number of periods per year t = number of years So let's substitute the known values and solve: A = P(1 + r/n)^tn A = 12000(1 + 0.032/1)^(6*1) A = 12000(1.032)^6 A = 12000(1.208031291) A = 14496.38 So the answer is $14,496.38
