Answer: Choice B.
[tex]A = 1500(1.00167)^{12t}[/tex]
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Explanation:
You could use the formula
[tex]A = P(1+\frac{r}{n})^{nt}[/tex]
to plug in P = 1500, r = 0.02 and n = 12 to get the answer above. This is the compound interest formula. The interest rate r is divided into n = 12 to account for monthly compounding. The original exponent t turns into 12t. So for instance, if t = 2 years go by, then 12*t = 12*2 = 24 months have gone by.
