Question

How much would $200 invested at 5% interest compounded monthly be worth after 9 years? Round your answer to the nearest cent. A.$363.82B.$310.27C.$313.37D.$207.63

Answer 1

Given that

$200 are invested at 5% interest compounded annually.

And we have to find the Amount after 9 years.

Explanation -

The formula for amount is

`Amount=P(1+(r)/(n))^(n* t)`

We have to find the amount after 9 years so t = 9 and n = 12

And 5% in decimal form can be written as 5% = 5/100 = 0.05

Then,

`\begin{gathered} Amount=200*(1+(0.05)/(12))^(12*9)=200*(1+0.00416667)^(108) \\ Amount=200*1.00416667^(108)=200*1.566847=313.37 \end{gathered}`

So the correct option is C

ANd the final answer is $313.37