How much compound interest will an account of $12,000 bear after 6 years at 3.2% apr, compounded annually? (hint: use the formula for annual compound interest.) $2,496.38 $14,496.38 $1,896.38 $496.38 save and exit

$14,496.38

    
The formula for compound interest is 
 A = P(1 + r/n)^tn 
 where 
 A = Amount after interest 
 P = Amount of principle 
 r = interest rate 
 n = number of periods per year 
 t = number of years   
 So let's substitute the known values and solve: 
 A = P(1 + r/n)^tn 
 A = 12000(1 + 0.032/1)^(6*1) 
 A = 12000(1.032)^6 
 A = 12000(1.208031291) 
 A = 14496.38    So the answer is $14,496.38

This does not make sense