KIWavalalewin
Answered

How much would $200 invested at 4% interest compounded monthly be worth after 8 years? Round your answer to the nearest cent.

a(t)=p(1+r/2)^nt

A$205.40
B$273.71
C$322.83
D$275.28

Verified Answer :

apologiabiology

your formula is wrong
it should be
\(A=P(1+ \frac{r}{n})^{nt}\)
A=future amount
P=present amount
r=rate in decimal
n=number of times per year compounded
t=time in years


given
P=200
R=0.04
N=12 (12 months in 1 year)
t=8


\(A=200(1+ \frac{0.04}{12})^{(12)(8)}\)
\(A=200(1+ 0.003333333)^{96}\)
\(A=200(1.003333333)^{96}\)
A=275.279
round
275.28

D is answer

The worth of  $200 invested at 4% interest compounded monthly after 8 years would be $275.28.

What is the future value?

When an amount is compounded monthly, both the amount invested and the interest accrued increase in value every month.

The formula for calculating future value:

FV = P (1 + r)^nm

  • FV = Future value
  • P = Present value
  • R = interest rate
  • m = number of compounding
  • N = number of years

$200(1 + 0.04/12)^(12 x 8) = $275.28

To learn more about future value, please check: https://brainly.com/question/18760477

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