Question

Given an investment of $2300, after 7 months, earning 6.6% APR, compounded monthly, the future value is given by

Answer 1

we are given

investment amount is 2300

so,

$P=2300$

$r=6.6%$

$r=0.066$

it is compounded monthly

so,

n=12

now, we can use formula

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

now, we can plug values

t=7/12

and we get

$FV=2300(1+\frac{0.066}{12})^{7}$

now, we can find FV

$FV= 2390.02454$............Answer