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$400 after 4 years at 4% compounded monthly

User Nomie
by
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1 Answer

2 votes

Answer:

$472.40

Explanation:

To calculate the future value of $400 after 4 years at 4% compounded monthly, we can use the formula:

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

Where:

PV = Present value = $400

r = Annual interest rate = 4%

n = Number of compounding periods per year = 12 (since it's compounded monthly)

t = Number of years = 4

FV = Future value

Plugging in the values, we get:

FV = $400 x (1 + 0.04/12)^(12*4)

FV = $400 x (1.003333)^48

FV = $400 x 1.181

FV = $472.40

Therefore, the future value of $400 after 4 years at 4% compounded monthly is approximately $472.40.

User Ziki
by
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