Which of the following amounts is closest to the end value of investing $10,000 for 18 months at a stated annual interest rate of 12% compounded quarterly?
A) $11,800
B) $11,852
C) $11,940
D) $11,961
E) None of these. is within $100 of the correct answer.

Question

Quizplus · Accepted Answer

The formula for compound interest is A = P(1 + r/n)^(nt). Here, P = $10,000, r = 0.12, n = 4, and t = 1.5 years. Calculating gives A ≈ $11,940.

Which of the Following Amounts Is Closest to the End