Question

If you start with $500 in your account and invest it, how much will you have after 3 months?

A) $501.50
B) $507.54
C) $590.00
D) $595.51

Answer 1

After 3 months of investing $500 with a 2% interest rate per month, you will have $507.54.

Step-by-step explanation:

To calculate how much money you will have after 3 months of investing $500, we need to know the interest rate. If we assume a 2% interest rate per month, the calculation will be:

$500 + ($500 * 0.02) + [($500 + ($500 * 0.02)) * 0.02] + [($500 + ($500 * 0.02) + [($500 + ($500 * 0.02)) * 0.02]) * 0.02]

By simplifying this expression, the answer is $507.54 (option B).