Question

how much would $100 invested at 6% interest compounded mothly be worth after 20 years? round answer to the nearest cent

Answer 1

Answer:

He's right. It's 331.02

Step-by-step explanation:

Answer 2

Alright, so in order to solve this problem, you need to know the formula for compound interest, which is 
A= P(1+r/n)^nt
A is the final amount, P is the beginning amount, r is the rate it is being compounded at, n is the number of compounds per year, and t is obviously the time or number of years

Since it is compounded monthly, n will equal 12, as there are 12 months in a year.

Plug in what you have and you get A= 100 (1 + .06/12)^(12)(20)
A=331.02