Question

Arianna invest $8,093 in a new savings account which earns 4.9% annual interest, compounded monthly. What will be the value of her investment after 8 years? Round to the nearest cent.

Answer 1

11967.58

Explanation:

The formula is

A=p(1+r/k)^(k×t)

A future value

P present value

R interest rate

K compounded monthly 12

T time

A=8,093×(1+(0.049÷12))^(12×8)=11967.58