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advanced-math$30,000 is invested at 7.2% annual interest compounded monthly. How much interest is earned in the first year?
A
$2,235.09
B
$2,160.00
C
$2,300.00
D
$2,500.00
Correct Answer: A
Choice A is the correct answer. Calculate the interest earned.
- Values: , , , .
- Final Amount: .
- Calculate: , so .
- Interest: .
💡 Strategic Tip: Interest earned = Final amount - Principal.
Choice B is incorrect because this uses simple interest, not compound. Choice C is incorrect because the calculation is wrong. Choice D is incorrect because this is too high.