Question

how much would $300 invested at 4% interest compounded monthly be worth after 8 years? round your answer to the nearest cent

Answer 1

412.92

Explanation:

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

A: Amount, P: Principal, r: interest, n: no.of times compounded yearly and t: time in years

We have P = 300

r = 4% = 0.04

n = 12 (compounded monthly)

t = 8

`A = 300(1+(0.04)/(12) )^(12*8)\\\\300((12.04)/(12) )^(96)\\\\= 412.92`