165k views
2 votes
How much would $300 invested at 4% interest compounded monthly be

worth after 8 years? Round your answer to the nearest cent.
A(1) = P(1+)

2 Answers

0 votes

Answer:

the correct answer is 412.92

User Bruno Caceiro
by
7.5k points
5 votes

Answer:

$412.92

Explanation:

You are going to want to use the compound interest formula, which is shown below.


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

P = initial balance

r = interest rate

n = number of times compounded annually

t = time

The first step is to change 4% into its decimal form:

4% ->
(4)/(100) -> 0.04

Now plug in the values:


A=300(1+(0.04)/(12))^((12)8)


A=412.92

It would be worth $412.92

User Shaaban Ebrahim
by
8.5k points

No related questions found

Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

9.4m questions

12.2m answers

Categories