Respuesta :
The formula for compounding interest monthly is shown as follows;
[tex]A=P(1+\frac{r}{n})^{nt}[/tex]Where the variables are;
[tex]\begin{gathered} A=\text{amount at the end of the investment} \\ P=\text{amount initially invested} \\ r=annual\text{ rate of interest} \\ t=time\text{ in years} \\ n=\text{ number of compounding periods per year} \end{gathered}[/tex]The amount after the period of investment shall be;
[tex]\begin{gathered} A=P(1+\frac{r}{n})^{nt} \\ A=70000(1+\frac{0.06}{12})^{12\times10} \\ A=70000(1+0.005)^{120} \\ A=70000(1.005)^{120} \\ A=70000\times1.8193967340323313 \\ A=127357.7713822619 \\ A\approx127,357.77 \end{gathered}[/tex]ANSWER:
By the time he retires at age 70 Dan would have $127,357.77
The correct answer is option B
