Question

What would be the value of $150 after eight years if you earn 12 percent interest per year? $371.39 $415.96 $465.88

Answer 1

Answer: $371.39

Step-by-step explanation:

The formula to calculate the compound amount after t years is given by :-

$A=P(1+r)^t$, where P is the principle amount and  r is the rate of interest.

Given: Principle amount =$150

The rate of interest = 12%=0.12

Now, the amount compounded after 8 years will be:-

$A=150(1+0.12)^8=150(1.12)^8=371.394476444\approx371.39$

Hence, the value of $150 after eight years if you earn 12 percent interest per year would be $371.39.

Answer 2

$371.39.
Hope it helps