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What is the future value of a 10-year investment of $1300 at an APR of 8% compounded monthly?

User Aliuk
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1 Answer

1 vote

Answer:

Explanation:

To calculate the future value of the investment, we can use the formula:

FV = P * (1 + r/n)^(n*t)

where:

P = the principal amount ($1300 in this case)

r = the annual interest rate expressed as a decimal (8% = 0.08)

n = the number of times the interest is compounded per year (12 for monthly compounding)

t = the number of years of the investment (10 years in this case)

Plugging in the values, we get:

FV = $1300 * (1 + 0.08/12)^(12*10)

FV = $1300 * (1.00666667)^(120)

FV = $1300 * 1.115969

FV = $1,464.75

Therefore, the future value of the investment after 10 years at an APR of 8% compounded monthly would be $1,464.75.

User Dbaer
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