Answer:
<h2>Option A is the answer(here the answer is calculated taking the whole value, without approximating it to a nearest value)</h2>
Step-by-step explanation:
Annual interest rate is 2.75%. Hence, the monthly interest rate is 
The amount will be compounded
times.
Every month they deposits $500.
In the first month that deposited $500 will be compounded 240 times.
It will be ![500\times [1 + \frac{2.75}{1200} ]^{240}](https://tex.z-dn.net/?f=500%5Ctimes%20%5B1%20%2B%20%5Cfrac%7B2.75%7D%7B1200%7D%20%5D%5E%7B240%7D)
In the second month $500 will be deposited again, this time it will be compounded 239 times.
It will give ![500\times [1 + \frac{2.75}{1200} ]^{239}](https://tex.z-dn.net/?f=500%5Ctimes%20%5B1%20%2B%20%5Cfrac%7B2.75%7D%7B1200%7D%20%5D%5E%7B239%7D)
Hence, the total after 20 years will be ![500\times [1 + \frac{2.75}{1200} ]^{240} + 500\times [1 + \frac{2.75}{1200} ]^{239} + ........+ 500\times [1 + \frac{2.75}{1200} ]^{1} = 160110.6741](https://tex.z-dn.net/?f=500%5Ctimes%20%5B1%20%2B%20%5Cfrac%7B2.75%7D%7B1200%7D%20%5D%5E%7B240%7D%20%2B%20500%5Ctimes%20%5B1%20%2B%20%5Cfrac%7B2.75%7D%7B1200%7D%20%5D%5E%7B239%7D%20%2B%20........%2B%20500%5Ctimes%20%5B1%20%2B%20%5Cfrac%7B2.75%7D%7B1200%7D%20%5D%5E%7B1%7D%20%3D%20160110.6741)