Answered

If $240 is invested at an interest rate of 9% per year and is compounded monthly, how much will the investment be worth in 14 years?


$68.39

$704.28

$842.13

$846.10

Verified Answer :

quan15d

it is 842.13.............................

calculista

Answer:

Option \(\$842.13\)  

Step-by-step explanation:

we know that    

The compound interest formula is equal to  

\(A=P(1+\frac{r}{n})^{nt}\)  

where  

A is the Final Investment Value  

P is the Principal amount of money to be invested  

r is the rate of interest  in decimal

t is Number of Time Periods  

n is the number of times interest is compounded per year

in this problem we have  

\(t=14\ years\\ P=\$240\\ r=0.09\ =12\)  

substitute in the formula above  

\(A=\$240(1+\frac{0.09}{12})^{12*14}=\$842.13\)  

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