The future value of Jimmys account after 6 months is $914.18
7.5% APR means month interest is ⇒ [tex]\frac{7.5}{100.12}[/tex] = 0.00625
How to calculate Compound Interest?
Compound interest is the interest you earn on interest. This can be illustrated by using basic math: if you have $100 and it earns 5% interest each year, you'll have $105 at the end of the first year. At the end of the second year, you'll have $110.25.
1st month
P = $150
I = 150×0.00625 ⇒ 0.9375
Amount = 150 + 0.9375 ⇒ 150.9375
2nd month
P = 150.9375 + 150 ⇒ 300.7935
I = 300.7935 × 0.00625 = 1.88
Amount = 300.7935 + 1.88 ⇒ 302.82
3rd month
P = 150+302.82 ⇒ 452.82
I = 452.82 × 0.00625 ⇒ 2.83
A = 452.82 + 2.83 ⇒ 455.65
4th month
P = 150 + 455.65 ⇒ 605.65
I = 605.65 × 0.00625 ⇒ 3.785
A = 605.65 + 3.785 ⇒ 609.435
5th month
P = 150 + 609.435 ⇒ 759.435
I = 759.435 × 0.00625 ⇒ 4.75
A = 764.18
6th month
P = 150 + 764.18 ⇒ 914.18
I = 914.18 × 0.00625 ⇒ 5.71
A = 914.18 + 5.71 ⇒ 919.89
According to option last month interest is not considered.
According to option last month interest is not considered.
∴ The answer will be 914.18
Learn more about Compound Interest here: https://brainly.com/question/2455673
#SPJ2
