Question

Javae got $100 for his birthday. He listened to a Podcast about investing, and decided he would try it. He invested his $100 into a fund that has 9% growth per year. How much will Javae have in that account on his 30th birthday? (16 years

from now).

O 1,327
O $22
O $2,884,414
O $397

Answer 1

The formula for compound interest is A = P(1 + r/n)^(nt), where A is the final amount, P is the initial principal, r is the interest rate, n is the number of times the interest is compounded per year, and t is the time in years.

In this case, P = $100, r = 9% = 0.09, n = 1 (compounded annually), and t = 16. We want to find A.

A = 100(1 + 0.09/1)^(1*16)

A = $397.42

Therefore, Javae will have $397.42 in his account on his 30th birthday. The answer is option D.