Solve the Problem $\$ 18,000$ Is Put Aside in a Money Market Account with Interest

question 296

Multiple Choice

Solve the problem.
-If $\$ 18,000$ is put aside in a money market account with interest reinvested monthly at $2.3 \%$ , find the time required for the account to earn $\$ 2,000$ . Round to the nearest month. Use the model $A = P$ $\left( 1 + \frac { r } { n } \right) ^ { n t }$ where $A$ represents the future value of $P$ dollars invested at an interest rate $r$ compounded $n$ times per year for $t$ years.

• A) 96 months
• B) 5 months
• C) 55 months
• D) 97 months

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