Question

Find the future value of $3633.49 invested for 2 years at 4% compounded monthly?

Answer 1

the rate is r = 4 %

principle is p = 3633.49 $

time = 2 year

so the Amount is,

$A=P(1+\frac{R}{100})^T$$\begin{gathered} A=3633.49\times(1+\frac{4}{100})^2 \\ A=3633.49\times(\frac{104}{100})^2 \end{gathered}$$\begin{gathered} A=3633.49\times\frac{104}{100}\times\frac{104}{100} \\ A=3929.98\text{ \ } \end{gathered}$

so the Amount after 2 yrs is 3929.98 $