Answer:
Option B. [tex]\$1,584.52[/tex]
Step-by-step explanation:
we know that
The compound interest formula is equal to
[tex]A=P(1+\frac{r}{n})^{nt}[/tex]
where
A is the Final Investment Value
P is the Principal amount of money to be invested
r is the rate of interest in decimal
t is Number of Time Periods
n is the number of times interest is compounded per year
in this problem we have
[tex]t=9\ years\\ P=\$2,874\\ r=0.05\\n=1[/tex]
substitute in the formula above
[tex]A=\$2,874(1+\frac{0.05}{1})^{1*9}=\$4,458.52[/tex]
Find the interest
[tex]I=A-P=\$4,458.52-\$2,874=\$1,584.52[/tex]
