If you invest $100 at 12 percent for three years, how much would you have at the end of three years using compound interest?
A)$136
B)$140.49
C)$240.18
D)$173.18

Question

Quizplus · Accepted Answer

Using the compound interest formula, we have:
A = P(1 + r/n)^(nt)
where A is the amount at the end of the investment period, P is the principal amount ($100 in this case), r is the interest rate (12% or 0.12), n is the number of times the interest is compounded per year (assuming yearly compounding, n=1), and t is the time period (3 years).
Plugging in the values, we get:
A = 100(1 + 0.12/1)^(1*3)
A = $140.49
Therefore, the best choice is B.

If You Invest $100 at 12 Percent for Three Years