Answer:
Option D. [tex]\$83.75[/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=30\ years\\ P=\$187.45*0.10=\$18.745\\ r=0.05\\n=12[/tex]
substitute in the formula above
[tex]A=\$18.745(1+\frac{0.05}{12})^{12*30}=\$83.75[/tex]
