michosamistermas
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How much would $300 invested at 4% interest compounded monthly be worth after 8 years? Round your answer to the nearest cent.


Equation: A(t)=P(1+r/n)^nt

Verified Answer :

MissPhiladelphia

You are given an initial investment of $300 at 4% interest compounded monthly after 8 years. The solution to this question is shown below.

A(t) = P(1+r/n)^nt
A(8) = 300(1+0.04/12)^12(8)
A(8) = 300(1+0.04/12)^96
A(8) = 300(1.033)^96
A(8) = $412.91

lublana

Answer:

$412.9

Explanation:

We are given that

P=$300

r=4% =0.04

Time,t=8 years

1 year=12 month

Therefore,n=12

\(A(t)=P(1+\frac{r}{n})^{nt}\)

We have to find the amount after 8 years.

Substitute the values in the above formula

Then, we get

\(A(8)=300(1+\frac{0.04}{12})^{12\times 8}\)

\(A(8)=300(1+\frac{0.04}{12})^{96}\)

\(A(8)=412.9\)

Hence, amount after 8 years would be worth=$412.9

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