Judy invested $8500 in a three-year compound-interest GIC earning 6% compounded monthly. What is the GIC's maturity value?
A) $7102.98
B) $10,102.98
C) $10,123.64
D) $9897.02
E) $10,171.78

Question

Quizplus · Accepted Answer

The maturity value is calculated using the formula for compound interest: $ A = P(1 + \frac{r}{n})^{nt} $. Here, $ P = 8500 $, $ r = 0.06 $, $ n = 12 $, and $ t = 3 $. Plugging in these values gives the maturity value as approximately $10,171.78.

Judy Invested $8500 in a Three-Year Compound-Interest GIC Earning 6