Question

How much would $200 invested at 4% interest compounded monthly be

worth after 8 years? Round your answer to the nearest cent

Answer 1

To find the simple interest, we multiply 200 × 0.04 × 8 to get that:

The interest is: $64.00

Answer 2

$275.28

Explanation:

A = P (1 + r/n)ⁿˣ P: 200 r: 0.04 n: 12 x: 8

=200 ( 1 + 0.04/12)⁸ˣ¹²

= 200 (1 + 0.00333)⁹⁶

= 275.28