Compound Interest, SMB-005 MC Roger invests $1400. He earns interest at 4% per annum, compounded monthly. What is the future value of Roger's investment after 2.5 years? $1540.00 $1546.98 $3080.00 $4540.76 Show Answers Only `B` Show Worked Solution `text{Annual interest rate = 4% = 0.04}` `text(Monthly interest rate) = \frac(0.04)(12)` `n = 2.5 xx 12 = 130` `FV` `= PV(1 + r)^n` `= 1400 (1 + frac(0.04)(12))^30` `= $1546.98` `=> \ B`