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Submit Answer -/1 Points] DETAILS BRECMBC9 11.1.040. MY NOTES A 1 The FemRod Motorcycle Company invested $350,000 at 4.5% compounded monthly to be used for the expansion of their manufacturing facilities. How much money will be available for the project in 5 years? (Round y to the nearest dollar



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Answer:$438,491.

Explanation

To calculate the amount of money that will be available for the project in 5 years, we can use the formula for compound interest:

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

Where:

A = the final amount of money

P = the initial investment or principal ($350,000 in this case)

r = the annual interest rate (4.5% or 0.045 as a decimal)

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

t = the number of years (5 years in this case)

Plugging in the values, we can calculate the final amount available:

A = 350,000(1 + 0.045/12)^(12*5)

A = 350,000(1 + 0.00375)^(60)

A ≈ 350,000(1.00375)^60

A ≈ 350,000(1.2535447081)

A ≈ 438,490.64

Therefore, the amount of money available for the project in 5 years would be approximately $438,491.

Please note that this is an approximation rounded to the nearest dollar, as specified in the question.

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