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Jonathan put $4300 in the bank earning 4.8% interest that is compounded monthly. How much will he have after 9 years?

a) $5,802.36
b) $6,000.48
c) $6,301.92
d) $6,609.63

1 Answer

3 votes

Final answer:

After 9 years, Jonathan's investment with 4.8% interest compounded monthly will grow to approximately $6,653.62. This is not matching any of the provided answer choices, which suggests a possible error in the question or its options.

Step-by-step explanation:

Jonathan wants to calculate the future value of his $4300 investment earning 4.8% interest compounded monthly after 9 years. To solve this, we can use the compound interest formula:

A = P(1 + r/n)nt

where:

  • P = principal amount ($4300)
  • r = annual interest rate (4.8% or 0.048)
  • n = number of times interest is compounded per year (12)
  • t = number of years (9)

Plugging these values into the formula gives us:

A = $4300(1 + 0.048/12)12*9

Calculating the above expression:

A ≈ $4300(1 + 0.004)108

A ≈ $4300 * 1.5474

A ≈ $6653.62

Therefore, after 9 years, Jonathan will have approximately $6,653.62, which is not one of the provided options. There seems to be a discrepancy in the question's options and the calculated result.

User Grinneh
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