$485 is deposited into a savings account that earns 3.25% compound interest for 6 years. How much is in the account at the end of 6 years?Question 3 options:$587.60$94.58$102.60$579.58

Answer:$485 is deposited into a savings account. The total amount by the end of 6 years will be is $587.6 approximately. Option A is correct.Solution:Given, $485 is deposited into a savings account that earns 3.25% compound interest for 6 years. We have to find how much is in the account at the end of 6 years? Now, amount = $485, interest rate = 3.25%, time period = 6 years. We know that, compound interest is given as,[tex]=\text {amount}\left(1+\frac{\text {interest rate}}{100}\right)^ { time period }[/tex][tex]\begin{array}{l}{\text { Compound interest }=485 \times\left(1+\frac{3.25}{100}\right)^{6}} \\\\ {=485 \times(1+0.0325)^{6}} \\\\ {=485 \times 1.0325^{6}} \\\\ {=485 \times 1.211547} \\\\ {=587.6}\end{array}[/tex]Hence, the total amount by the end of 6 years will be is $587.6 approximately. So option A is correct.