Question

if $11,100 is invested at 3.1% interest compounded monthly, how much will the investment be worth in 19 years?

Answer 1

Answer:

In 19 years, the investment will be worth $19973.34

Step-by-step explanation:

The compound interest formula is :

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

p = 11100

r = 3.1% or 0.031

t = 19

n = 12 (compounded monthly)

Now, putting these values in the formula we get;

$A=11100(1+\frac{0.031}{12})^{12*19}$

=> $A=11100(1.00258)^{228}$

A = $19973.34

Answer 2

A=p(1+i/m)^mn
A=11,100×(1+0.031÷12)^(12×19)
A=19,989.07