Question

how much would $200 invested at 4% interest compounded monthly be worth after 8 years round your answer to the nearest tenth

Answer 1

Answer:

The amount is $275.3

Step-by-step explanation:

We can use amount formula

$A=P(1+\frac{r}{n})^{nt}$

where

A is the amount

P is money invested

r is interest rate

n is number of periods

t is time in years

we are given

P=200

r=4%=0.04

t=8

n=12

so, we can plug these values

$A=200(1+\frac{0.04}{12})^{12\times 8}$

we can simplify it

and we get

$A=275.3$

So,

The amount is $275.3