Question

$1000 invested with compound interest at a rate of 15% per year for 9 years. Formula: M = P(1+ i)n Group of answer choices $3517.88 $424.36 $1519.38 $888.15 $1788.14

Answer 1

Option A.

Explanation:

Note: Let as consider, we have to find the total amount after 9 years.

It is given that,

Principal amount = $1000

Rate of compound (yearly) interest = 15% = 0.15

Time = 9 year

The formula for total amount is

`M=P(1+i)^n`

where, P is principal, i is rate of interest and n is number of years.

Substituting P=1000, i=0.15 and n=9, we get

`M=1000(1+0.15)^9`

`M=1000(1.15)^9`

`M=1000(3.5178763)`

`M=3517.8763`

`M\approx 3517.88`

So, the total amount after 9 years is $3517.88.

Therefore, the correct option is A.