The amount invested yearly is $175
interest rate = 5 = 5/100 = 0.05
time = 4 years
We would apply the formula which is expressed as
t = 1 + rate
Expressing it for 4 years, we have
((Pt + P)t + P)t + ................
It becomes
FV = ((((P(1 + r) + P) 1 + r + P)1 + r + P)(1 + r)
This shows us that it is 4 years
Where P is the amount invested yearly
FV is the future value
1 + r = 1 + 0.05 = 1.05
Thus, we have
FV = ((((175*1.05)+ 175)1.05 + 175)1.05 + 175)1.05
FV = 791.99
Option D is correct
