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7. Levi invests $600 into an account earning 4% annual interest compounded monthly. How much money

will he have in 14 years?

1 Answer

3 votes

Answer:

Explanation:

To solve this question, we can use the formula for compound interest:

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

Where:

A is the total amount of money after t years

P is the initial principal (in this case, $600)

r is the annual interest rate (4%)

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

t is the number of years

Plugging in the values, we get:

A = 600(1 + 0.04/12)^(12*14)

A = 600(1.00333)^168

A = $988.42 (rounded to two decimal places)

So, after 14 years, Levi will have approximately $988.42 in his account.

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