Question

how much would $500 invested at 8% interest compounded annually be worth after 4 years? round to the nearest cent. A(t)=P(1+r/n)^nt

Answer 1

Step-by-step explanation

Amount invested = $500

Interest rate = 8%

Duration = 4 years

Therefore total compounded amount after each =

500/100 x 8/1

= 5 x 8 = 40

Multiply by duration of 4 years

= 40 x 4 = $160

Round to nearest Cent

= 100 cents = $1

Therefore $160 = 100 cents x 160

= 16, 000 Cents