Question

Find the accumulated value of an investment of $5,000 at 4.25% compounded monthly for 8 years. Round your answer

Answer 1

$20,400.00

Explanation:

so, they're paying 4.25% of $5,000 every month for 8 years.

well, first lets see how many payments were made.

8 x 12 = 96 payments

4.25% of 5,000 is 212.5

so 96 payments of $212.5 is...

$20,400.00

dang, that's a lot of money.