Question

500 principal earning 3% compound monthly, after 10 years.

Answer 1

Answer:

D. $674.68

Step-by-step explanation:

We will use the well known equation for compound interest

$A = P(1 + \frac{r}{n})^{nt}$

Where

• $A$ is the final total
• $P$ is the principal amount (starting total)
• $r$ is the interest rate as a decimal
• $n$ is the number of times the interest is compounded each year
• $t$ the number of years

Plugging in what we know from the question:

$A = 500(1+\frac{0.03}{12})^{12 \times 10}\\A = 500(1.34935355)\\A = 674.68$

So the answer is D.

Hope this helps!