Question

If John invests the $1,000 he receives today at an interest rate of 4.8% compounded monthly, in one year the

investment will be worth $
When John receives $1,000 a year from now, the $1,000 he invested today will be worth $
$1,000 he receives in the future.
more than the
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Answer 1

To calculate the future value of an investment with compound interest, we can use the formula FV = P(1 + r/n)^(nt). In this case, John's $1,000 investment at an interest rate of 4.8% compounded monthly will be worth approximately $1,048.64 after 1 year.

Step-by-step explanation:

To calculate the future value of an investment with compound interest, we can use the formula:

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

Where:

• FV is the future value
• P is the principal amount (the initial investment)
• r is the annual interest rate (as a decimal)
• n is the number of times the interest is compounded per year
• t is the number of years the money is invested for

In this case, John's initial investment is $1,000, the interest rate is 4.8% (or 0.048 as a decimal), and the interest is compounded monthly (so n = 12). We want to calculate the future value after 1 year, so t = 1.

Plugging these values into the formula:

FV = 1000(1 + 0.048/12)^(12*1)

Calculating the result:

FV ≈ $1,048.64

Answer 2

If John invests the $1,000 he receives today at an interest rate of 4.8% compounded monthly. in one year the investment will be worth $ 1,049

When John receives $1,000 a year from now, the $1,000 he invested today will be worth $49 more than the $1,000 he receives in the future.

Step-by-step explanation:

Just answered the question.