Question

PLEASE HELP!

You invest $1000 in an account that has an annual interest rate of 4%, compounded monthly for 12 years. What is the equivalent interest rate and how many times will the money be compounded?
0.33% and 1 time
3% and 4 times
3% and 144 times
0.33% and 144 times

Answer 1

Answer:

The final balance is $1,612.23.

The total compound interest is $612.23.

Step-by-step explanation:

Answer 2

The required equivalent interest rate and money compounded is 0.33% and 144 times respectively. Option b is correct.

Equivalent interest rate for 4% and how many times the money will be compounded to be determine.

What is arithmetic?

In mathematics it deals with numbers of operations according to the statements.

Here, the equivalent interest rate = 4%/12
                                                     = 1/3
                                                     = 0.33%

Now, number of times money compounded = 12 years
                                                                    = 12 x 12 months
                                                                    = 144

Thus, the required equivalent interest rate and money compounded is 0.33% and 144 times respectively.

Learn more about arithmetic here:

brainly.com/question/14753192

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