Answer:
Option D. 216
Explanation:
The value of "t" can be calculated using the compounding formula given as under:
Principal Amount * (1 + r)^(t-n)/n = Future Value
Here
Principal Amount is $1,000
r is 8%
n is the number of payment which is 12th here
Future Value is $3,700
By putting values, we have:
$1,000 * (1 + 8%)^(t-12)/12 = $3,700
(1.08)^ (t-12)/12 = 3.7
By taking natural log on both sides:
(t-12)/12 = 17
t = 216
