181k views
3 votes
Hellen invested $20,000 that earns 4.68% compounded monthly for four years. Find the future value of Hellen’s investment.

1 Answer

4 votes

Final answer:

The future value of Hellen's investment is approximately $23270.37.

Step-by-step explanation:

To find the future value of Hellen's investment, we can use the formula for compound interest.

The formula is: FV = P(1 + r/n)^(nt), where FV is the future value, P is the principal (initial investment), r is the annual interest rate (as a decimal), n is the number of times interest is compounded per year, and t is the number of years.

In this case, Hellen invested $20,000, the interest rate is 4.68% or 0.0468, and it is compounded monthly (n=12) for four years (t=4).

Substituting the values into the formula, the future value is:

FV = 20000(1 + 0.0468/12)^(12*4)

Simplifying the equation gives:

FV ~ $23270.37

User Gerlinde
by
7.8k points