Question

How much would $200 invested at 5% interest compounded monthly be worth after 9 years? Round your answer to the nearest cent.

Answer 1

$A = P(1 + \frac{r}{n})^{nt}$
$A = 200(1 + \frac{0.05}{12})^{(12)(9)}$
$A = 200(1 + \frac{1}{240})^{108}$
$A = 200(1\frac{1}{240})^{108}$
$A = 200(1.56684664942)$
$A = 313.369329884$
$A = \ 313.37$