Question

How much would $300 invested at 4% interest compounded monthly be worth after eight years?

Answer 1

$412.91

Explanation:

A(t) = P(1+r/n)^nt (equation)

A(8) = 300(1+0.04/12)^12(8) (plugging it in)

A(8) = 300(1+0.04/12)^96 (simplifying)

A(8) = 300(1.033)^96 (adding up everything)

A(8) = $412.91 (answer)