Sara quit smoking and saves $80 per month previously spent on cigarettes. She invests the money at 5% compounded monthly. How much will she have in 10 years?

A) $7,542.51
B) $17,919.63
C) $12,422.58
D) $11,898.88
E) $12,474.34

Compounded Monthly

This term refers to the process of earning interest on both the initial principal and the accumulated interest from previous periods, calculated on a monthly basis.

Invest

To assign funds with the anticipation of obtaining future gains, like earnings or financial returns.

Saves

In finance, the amount of money that is set aside from income, typically in a savings account or other forms of secure investment.