Ellen now has $125. How much would she have after 8 years if she
Leaves it invested
At 8.5% with annual compounding?
A) $205.83
B) $216.67
C) $228.07
D) $240.08
E) $252.08

Question

Quizplus · Accepted Answer

Using the formula A=P(1+r/n)^(nt), where A is the amount after t years, P is the initial amount, r is the annual interest rate, n is the number of times the interest is compounded per year, and t is the number of years:

A = 125(1+0.085/1)^(1*8)
A = $240.08

Therefore, Ellen would have $240.08 after 8 years if she leaves it invested at 8.5% with annual compounding. The answer is D.

Ellen Now Has $125