Final answer:
Gabriel's $150 investment with a 17.4% annual compound interest rate will grow to approximately $206.74 after 24 months.
Step-by-step explanation:
The question is asking us to calculate the future value of an investment with a compound interest rate applied annually. Gabriel invests $150 in a cryptocurrency account that provides a 17.4% annual interest rate. Since the interest is compounded annually, after 24 months—which is equivalent to 2 years—he will have:
Total Future Amount = Principal × (1 + Interest Rate)Number of Periods
Where the Principal is $150, Interest Rate is 17.4% or 0.174, and the Number of Periods is 2 (for 2 years).
So, the calculation will be:
Total Future Amount = $150 × (1 + 0.174)2
Total Future Amount = $150 × (1.174)2
Total Future Amount = $150 × 1.378276
Total Future Amount ≈ $206.74
Therefore, after 24 months, Gabriel's investment will grow to approximately $206.74.