Question

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+)

Answer 1

the correct answer is 412.92

Answer 2

$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