Answer :
Answer:
$587.60 will be in the account at the end of 6 years.
Solution:
Given that $ 485 is deposited into savings account
Interest earned is 3.25 % Compound Interest for years
We have to find how much is in the account at the end of 6 years
Compound Interest is given as:
[tex]A=P\left(1+\left(\frac{r}{n}\right)\right)^{n t}[/tex]
Where: A = Amount after compound interest
P = Principal/Base Amount
r = rate of compound interest
n = no. of times interest applied
t = time period
By substituting the values in the above formula, we can calculate the amount.
[tex]\text { Therefore, } A=485\left(1+\left(\frac{3.25}{1}\right)\right)^{6}[/tex]
[tex]A=485(1+3.25)^{6}=587.60[/tex]
Hence the amount at the end of 6 years is $ 587.60. Hence Option A is correct