Answer :
Option c is correct. The whole number of months it takes for an investment to increase by 10% at an annual percentage rate (APR) of 2.25%, compounded 5 times annually, is 53 months.
To calculate the number of months it takes for an investment to increase by 10%, we need to consider the compounding frequency. In this case, the investment is compounded 5 times annually.
We can use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
A is the future value of the investment
P is the principal amount
r is the annual interest rate (in decimal form)
n is the number of times interest is compounded per year
t is the number of years
In this scenario, we want to find the number of months it takes for the investment to increase by 10%, so the future value (A) will be 1.10 times the principal amount (P).
1.10 = P(1 + 0.0225/5)^(5t)
Simplifying the equation and solving for t, we find:
t ≈ 52.786
Since we are looking for a whole number of months, we round up to 53 months. Therefore, the answer is (C) 53.
Learn more about investment from here:
https://brainly.com/question/30105963
#SPJ11
