BUSINESS, FUR1 2004 VCAA 2 MC

Ardy invests `$150\ 000` for `6` years at an interest rate of `text(3.5%)` per annum, compounding annually.
The value of the investment at the end of the `6` years is

A. $31 500.00

B. $34 388.30

C. $178 107.00

D. $181 500.00

E. $184 388.30

Show Answers Only

`E`

Show Worked Solution

`text(Using)\ \ A`	`= PR^n`
`A`	`= 150\ 000 xx (1 + 3.5/100)^6`
	`= 150\ 000 xx 1.035^6`
	`= $184\ 388.299…`
	`≈ $184\ 388.30`

`:.\ text(Investment after 6 years is $184 388.30.)`

`=> E`