Question

An investment of $400 is compounded monthly at an interest rate of 7.6%. What will the

balance be in eight years? Round to the nearest hundredth.

Answer 1

See below

Explanation:

Present Value = 400

Period = 1 month 8 years is n = 96 periods

Interest per period in decimal form i = .076 / 12 = .0063333

Fv = PV ( 1 + i)^n

Fv = 400 ( 1 + .076/12)^96 = 733.29 dollars