Respuesta :
Winston would have A. More than $12,000, because the investment will grow faster over time as the interest compounds.
If Winston invested $200 every year at 6% for 30 years, the $200 would be an annuity and the future value of an Annuity is calculated as:
= Annuity x ( (1 + rate) ^ number of years - 1) / rate
= 200 x ( ( 1 + 6%) ³⁰ - 1) / 6%
= $15,811.64
Winston would have $15,811.64 which is more than $12,000 because compounded interest makes investments grow faster.
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