If you invest $100 at 12% APR 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:

A = P(1 + r/n)^(nt)

where:
P = 100 (principal)
r = 12% = 0.12 (annual interest rate)
n = 1 (compounding periods per year)
t = 3 (number of years)

A = 100(1 + 0.12/1)^(1*3) = $140.49

Therefore, the best choice is B.

If You Invest $100 at 12% APR for Three Years,how