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Kine invesods 18,000 at 7.5% per year compounded monthly. How much will she have in 8 years

User Azpublic
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Final answer:

The future value of an investment with compound interest can be calculated using the formula FV = PV * (1 + r/n)^(n*t), where FV is the future value, PV is the present value, r is the interest rate, n is the compounding frequency, and t is the number of years. In this case, the student will have approximately $27,131.30 after 8 years.

Step-by-step explanation:

To calculate the future value of an investment with compound interest, we can use the formula:

FV = PV * (1 + r/n)^(n*t)

Where:

  • FV is the future value of the investment
  • PV is the present value of the investment
  • r is the annual interest rate
  • n is the number of times interest is compounded per year
  • t is the number of years

Applying these values to the given question, we have:

FV = 18,000 * (1 + 0.075/12)^(12*8)

FV ≈ $27,131.30

User Mohammad Naji
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