Question

How much would $200 invested at 4% interest compounded monthly be
worth after 8 years? Round your answer to the nearest cent

Answer 1

Answer:

$275.28

Step-by-step explanation:

A = P (1 + r/n)ⁿˣ           P: 200   r: 0.04          n: 12         x: 8

   =200 ( 1 + 0.04/12)⁸ˣ¹²

   = 200 (1 + 0.00333)⁹⁶

   = 275.28

Answer 2

Answer:

To find the simple interest, we multiply 200 × 0.04 × 8 to get that:

The interest is: $64.00