Question

What is the future value of an account if $3,000 is invested at a rate of 8% compounded monthly

for 18 years? Round your answer to 2 decimal places.

Answer 1

Answer:

≈$12601.72

Explanation:

Use the compounded interest formula:

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

In our case,

P = 3000

r = 8% = 0.08

n = 12 (months per year)

t = 18 (years in total)

Therefore, A ≈ $12601.72 (2.d.p.)