Answer:
Option A) A = 100(1.005)^12t
Step-by-step explanation:
The formula for Total Amount obtained using compound interest is given as:
A = P( 1 + r/n) ^nt
Where
A = Total amount received or obtained after investing
P = Principal or Initial Amount invested
r = interest rate
n = rate or number of times the interest is compounded
t = time in years.
In the question we obtained this values
P = $100
r = 6% = 0.06
n = compounded monthly, we have 12 months in a year, hence, n = 12
t = t
Using the compound interest formula for Amount A,
A = P( 1 + r/n) ^nt
A = 100(1 + 0.06/12)^12 × t
A = 100(1 + 0.005)^12t
A = 100(1.005)^12t
Therefore, the value of Mari's Investment if the interest is compounded monthly is
A = 100(1.005)^12t
Hence, Option A is correct.
