Question

Robert invested $20,600 at 17% to be compounded monthly. what will be the value of robert's investment in 4 years? round your answer to the nearest cent. note: assume 365 days in a year and 30 days in a month.

Answer 1

To find the value of Robert's investment after 4 years at a 17% annual interest rate compounded monthly, we can use the compound interest formula, which yields a value of approximately $30,082.44.

Step-by-step explanation:

To calculate the value of Robert's investment after 4 years, we can use the compound interest formula:

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

Where:

• A is the future value of the investment
• P is the initial investment amount
• r is the annual interest rate (in decimal form)
• n is the number of times the interest is compounded per year
• t is the number of years

Given that Robert invested $20,600 at 17% annual interest rate compounded monthly, we can plug in the values into the formula:

A = $20,600(1 + 0.17/12)^(12*4)

Simplifying:

A = $20,600(1.01416666667)^(48)

Calculating:

A ≈ $30,082.44

Therefore, the value of Robert's investment after 4 years will be approximately $30,082.44.