Answer:
Option C. [tex]\$1,960.07[/tex]
Step-by-step explanation:
we know that
The compound interest formula is equal to
[tex]A=P(1+\frac{r}{n})^{nt}[/tex]
where
A is the Final Investment Value
P is the Principal amount of money to be invested
r is the rate of interest in decimal
t is Number of Time Periods
n is the number of times interest is compounded per year
in this problem we have
[tex]t=3\ years\\ P=\$1,600\\ r=7\%=7/100=0.07\\n=1[/tex]
substitute in the formula above
[tex]A=1,600(1+\frac{0.07}{1})^{1*3}[/tex]
[tex]A=1,600(1.07)^{3}[/tex]
[tex]A=\$1,960.07[/tex]
