Question

If a person invests $120 at 8% annual interest, find the approximate value of the investment at the end of 5 years. A. $164 B. $180 C. $401 D. $176

Answer 1

`\large \boxed{\sf \bf \ \ \ D. \ \$ 176 \ \ }`

Explanation:

Hello, please consider the following.

After 5 years, we will get

`120*(1+8\%)*(1+8\%)*(1+8\%)*(1+8\%)*(1+8\%)\\\\=120*(1+8\%)^5\\\\=120\cdot 1.08^5\\\\= 176.3193...`

Thank you