If you invest $12,000 today at an interest rate of 10%, how much will you have in 10 years?
A) $31,128
B) $25,940
C) $13,860
D) $40,712

Question

Quizplus · Accepted Answer

The correct answer is found using the formula for compound interest: A = P(1 + r)^n, where A is the amount of money accumulated after n years, including interest, P is the principal amount ($12,000), r is the annual interest rate (10% or 0.10), and n is the time the money is invested for (10 years). Plugging in the values: A = $12,000(1 + 0.10)^10 = $31,128.

If You Invest $12,000 Today at an Interest Rate of 10