If $2,000 is invested at 7 percent compounded monthly, what is the balance after 8 years?
A) $3,490.51
B) $3,495.65
C) $3,521.62
D) $3,601.84

Question

Quizplus · Accepted Answer

The correct answer is B because the balance after 8 years is $3,495.65. This can be calculated using the formula A = P(1 + r/n)^(nt), where A is the final amount, P is the principal, 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 = $2,000, r = 7%, n = 12 (since the interest is compounded monthly), and t = 8. Plugging these values into the formula, we get A = $3,495.65.

If $2,000 Is Invested at 7 Percent Compounded Monthly, What