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Gre4nikov [31]
3 years ago
5

Rodney invests​ $2,400 today, compounded​ monthly, with an annual interest rate of​ 6.25%. What is​ Rodney's investment worth in

one​ year?A.​$2,515.66B.​$2,554.37C.​$2,503.57D.​$2,532.00
Business
1 answer:
Zina [86]3 years ago
7 0

Answer:

B. $2,554.37

Explanation:

In this question we use the Future value formula which is shown below:

Future value = Present value × (1 + rate)^number of years

where,

Present value = $2,400

Rate = 0.625 ÷ 12 = 0.0052083333

Number of years = 1 month × 12 months = 12

So, the future value

= $2,400 × (1 + 0.0052083333 )^12

= $,2,400 × 1.0643218146  

= $2,554.37

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