Based on the amount invested and the interest rate as well as period of compounding, the amount after 18 years will be C. $12,302.34.
As the amount is being compounded monthly, you need to convert the interest rate and the period of compounding to a monthly basis.
Interest rate = 3%/12 = 0.25%
Period = 18 x 12 months = 216 months
The amount after 18 years is:
= Amount x ( 1 + rate) ^ number of periods
= 7,174 x (1 + 0.25%) ²¹⁶
= $12,302.34
In conclusion, the amount will be $12,302.34 after 18 years.
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