Question

What will be the value of Mary’s investment in 2 years?

Answer 1

Step-by-step explanation

In the question, we are given the following data

Principal = $46, 400

Time= 2 years

Rate =19% compounded on a monthly basis()

We will use the compound interest formula below to solve the question.

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

Therefore we will insert the parameters into the formula above. Since there are 12 months in a year, "n" becomes 12

`\begin{gathered} A=46400(1+(0.19)/(12))^(12*2) \\ A=67648.32 \end{gathered}`

Answer: The future investment would be 67648.32