Question

how much would $200 invested at 4% interest compounded monthly be worth after 8 years round your answer to the nearest tenth

Answer 1

The amount is $275.3

Explanation:

We can use amount formula

`A=P(1+(r)/(n))^(nt)`

where

A is the amount

P is money invested

r is interest rate

n is number of periods

t is time in years

we are given

P=200

r=4%=0.04

t=8

n=12

so, we can plug these values

`A=200(1+(0.04)/(12))^(12* 8)`

we can simplify it

and we get

`A=275.3`

So,

The amount is $275.3