Question

Compare investing $1500 at 9% compounded monthly for 11 years with investing $1500 at 14% compounded monthly for 11 years.

Answer 1

Final amount after 11 years = $4021.97

Explanation:

We will use the formula to get the final amount after t years,

Final amount =
`a(1+(r)/(n))^(nt)`

here a = Initial amount

r = Rate of interest

n = Number of compounding in a year

For Initial amount 'a' = $1500

r = 9%

t = 11 years

n = 12 [Compounded monthly]

F =
`1500(1+(9)/(12))^(12* 11)`

= $4021.97