Yup D Is Right Because if you divide by 3.8% * 5000 you get d
Answer:
D. $5591.93.
Step-by-step explanation:
We have been given that Matthew invested $5000 in an account that earns 3.8% interest, compounded annually.
We will use compound interest formula to solve our given problem.
[tex]A=P(1+\frac{r}{n})^{nt}[/tex], where,
A = Final amount after t years,
P = Principal amount,
r = Annual interest rate in decimal form,
n = Number of times interest is compounded per year,
t = Time in years.
Let us convert our given interest rate in decimal form.
[tex]3.8\%=\frac{3.8}{100}=0.038[/tex]
Upon substituting our given values in above formula we will get,
[tex]A=\$5000(1+\frac{0.038}{1})^{1*3}[/tex]
[tex]A=\$5000(1+0.038)^{3}[/tex]
[tex]A=\$5000(1.038)^{3}[/tex]
[tex]A=\$5000*1.118386872[/tex]
[tex]A=\$5591.93436\approx \$5591.93[/tex]
Therefore, Matthew will have an amount of $5591.93 is his account after 3 years and option D is the correct choice.
