If you deposit $2,500 into an investment that grows at 13.2% compounded monthly, what will its value be in 17.5 years?
A) $24,870
B) $57,750
C) $21,890
D) $48,901
E) $16,211

Question

Quizplus · Accepted Answer

The correct answer is A because the value of the investment after 17.5 years is $24,870. This can be calculated using the formula A = P(1 + r/n)^(nt), where A is the future value, P is the present value, r is the annual interest rate, n is the number of times per year that the interest is compounded, and t is the number of years. In this case, P = $2,500, r = 13.2%, n = 12 (since the interest is compounded monthly), and t = 17.5. Plugging these values into the formula, we get A = $24,870.

If You Deposit $2,500 into an Investment That Grows at 13.2