Question

How much would $140 invested at 6% interest compounded monthly be

worth after 15 years? Round your answer to the nearest cent.
A(+) = P(1+r/n)^rt
O A. $343.57
O B. $335.52
O C. $266.00
O D. $150.88

Answer 1

A. $343.57

Explanation:

You are going to want to use the compound interest formula, which is shown below.

`A=P(1+(r)/(n) )^(nt)`

P = initial balance

r = interest rate

n = number of times compounded annually

t = time

First, change 6% into the decimal form:

6% ->
`(6)/(100)` -> 0.06

Now plug in the values into the equation:

`A=140(1+(0.06)/(12))^((12)15)`

`A=343.57`

Your answer is A. $343.57