Question

How much would $200 invested at 5% interest compounded monthly be
worth after 9 years?

Answer 1

9514 1404 393

Answer:

$313.37

Explanation:

The compound interest formula is used to find that value.

A = P(1 +r/12)^(12t)

P compounded monthly at annual rate r for t years.

A = $200(1 +0.05/12)^(12·9) ≈ $313.37