Question

A family invest 4000 in an account paying 9% compounded monthly how much is account after 5 months

Answer 1

First use compound interest formula

P(1+ r/100)^n

P stands for principal which is amount of monry invested

r stands for the rate in terms of percentage

n stands for the no. of years. But in this case, its months so u need to do one extra step which
5/12


hence cmpd interest will be
: 4000((1+(9÷12)/100)^5×12



remember to note that when you divide the rate by a value, you must multiply the value to your no. of months in this case