To solve this problem, we need to use the formula for compound interest, which is:

A = P (1 + r/n)^(nt)

Where:
A = the amount of money accumulated after n years, including interest.
P = the principal amount (the initial amount of money)
r = annual interest rate (in decimal)
n = number of times that interest is compounded per year
t = time the money is invested for in years

Given in the problem:
P = $200
r = 5% or 0.05 (in decimal)
n = 12 (since the interest is compounded monthly)
t = 9 years

Substitute these values into the formula:

A = 200 (1 + 0.05/12)^(12*9)

Now, calculate the value inside the parenthesis:

= 200 (1 + 0.00416667)^(108)

= 200 (1.00416667)^(108)

Now, calculate the exponent:

= 200 * 1.5631297

Finally, multiply the principal amount by the result:

A = $312.63

So, the closest answer is C.$313.37.

Question

To solve this problem, we need to use the formula for compound interest, which is:

A = P (1 + r/n)^(nt)

Where:
A = the amount of money accumulated after n years, including interest.
P = the principal amount (the initial amount of money)
r = annual interest rate (in decimal)
n = number of times that interest is compounded per year
t = time the money is invested for in years

Given in the problem:
P = $200
r = 5% or 0.05 (in decimal)
n = 12 (since the interest is compounded monthly)
t = 9 years

Substitute these values into the formula:

A = 200 (1 + 0.05/12)^(12*9)

Now, calculate the value inside the parenthesis:

= 200 (1 + 0.00416667)^(108)

= 200 (1.00416667)^(108)

Now, calculate the exponent:

= 200 * 1.5631297

Finally, multiply the principal amount by the result:

A = $312.63

So, the closest answer is C.$313.37.

Knowee AI · Accepted Answer