If $450,000 is invested on June 3 at 7.75%, what will be the value of the investment on December 11?
A) $468,250
B) $466,625
C) $632,497
D) $432,461
E) $484,875

Question

Quizplus · Accepted Answer

The correct answer is A because the value of the investment on December 11 will be $468,250. This is calculated by multiplying the initial investment of $450,000 by the interest rate of 7.75% and then dividing by 12 to get the monthly interest rate. This monthly interest rate is then multiplied by the number of months between June 3 and December 11, which is 6, to get the total interest earned. This interest is then added to the initial investment to get the final value of the investment.

If $450,000 Is Invested on June 3 at 7