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David invested $44,000 at 8% to be compounded monthly. What will be the value of David's investment in 4 years? Round your answer to the nearest cent, if necessary. Note: 365 days in a year and 30 days in a month.

1 Answer

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To calculate the value of David's investment in 4 years, we can use the following formula:

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

where:

A is the final amount

P is the principal amount

r is the annual interest rate (in decimal form)

n is the number of compounding periods per year

t is the time in years

In this case, we have:

P = $44,000

r = 8% = 0.08

n = 12 (since David's investment is compounded monthly)

t = 4

Substituting these values into the formula, we get:

A = $44,000(1 + 0.08/12)^{12*4}

A = $57,846.33

Therefore, the value of David's investment in 4 years will be $57,846.33.

Note that we rounded our answer to the nearest cent, as instructed.

User Elias Bachaalany
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