Question 25 • Financial Math
Use the compound-interest formula with P = $1,500, r = 0.04, n = 12, and t = 3.75. There are 12 × 3.75 = 45 monthly compounding periods, so A = 1,500(1 + 0.04/12)^45 ≈ $1,742.32. The investment will be worth about $1,742.32, which is choice B.
AI-written and checked against the verified answer.