Algebra-1

Question Analysis
This question tests the student's ability to apply the compound interest formula to a real-world scenario. The problem provides the initial principal, the annual interest rate, the compounding frequency, and the time period. The student must correctly substitute these values into the compound interest formula and compute the final amount.

Key Concept Explanation
The key concept here is the compound interest formula, which is given by: where:
is the final amount (future value) including principal and interest,
is the initial principal, - is the annual interest rate (as a decimal),
is the number of times interest is compounded per year,
is the time the money is invested for, in years.

Step-by-step Solution
1. Identify the given values: , , , .
2. Substitute these values into the compound interest formula: .
3. Simplify the expression inside the parentheses:

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