A: First find the total interest paid at the end of 6 months: 2 / 100 * $10,000 = $200.00. Then find the total interest paid at the end of 10 months: 3 / 100 * $10,000 = $360. Then find the total interest paid at the end of 18 months: 4 / 100 * $10,000 = $900.00. Then add the interest paid for each month to find the total interest paid: $200 + $360 + $900.00 = $726.24. The answer is (B).
Answer the following multiple choice question with options (a), (b), (c), (d), (e) by reasoning step-by-step.
Q:Jolene entered an 18-month investment contract that guarantees to pay 2 percent interest at the end of 6 months, another 3 percent interest at the end of 10 months, and 4 percent interest at the end of the 18 month contract. If each interest payment is reinvested in the contract, and Jolene invested $10,000 initially, what will be the total amount of interest paid during the 18-month contract? Answer Choices: A)$506.00 B)$726.24 C)$900.00 D)$920.24 E)$926.24