If you invest $100 at 12% APR for three years, how much would you have at the end of 3 years using compound interest?
A) $136
B) $140.49
C) $240.18
D) None of the above

Question

Quizplus · Accepted Answer

Using the compound interest formula: 
A=P(1+r/n)^(nt)
where 
A = final amount
P = principal (initial investment)
r = annual interest rate
n = number of times interest is compounded per year
t = time (in years)

For this problem,
P = $100
r = 12% = 0.12 (as a decimal)
n = 1 (compounded annually)
t = 3

Substituting these values in the formula:
A = $100(1+0.12/1)^(1*3)
A = $100(1.12)^3
A = $140.49

Therefore, the answer is B: $140.49.

If You Invest $100 at 12% APR for Three Years