Question

How much would $200 invested at 4% interest compounded monthly be worth after 8 years?

Answer 1

Answer:

275.28

Step-by-step explanation:

apex

Answer 2

The formula for compound interest is
                                     A = P(1 + r/n)^(nt)
where A is the final amount after t years, P is the principle, r is the interest rate in decimal format, n is the number of compounding periods per year, and t is the time in years.
Should we have P = 200, r = 0.04, t = 8 , and n = 12
                                   A = 200(1 + 0.04/12)^(12 * 8)
                                   A = 275.279
The answer to this question is $275.28 when rounded.