Question

1. Mira invested $500 compounded monthly at 3.5%. How much will it be worth in 4 years?

Answer 1

Answer: A = $575.02

Step-by-step explanation:

Answer 2

Answer:

First, convert R as a percent to r as a decimal

r = R/100

r = 3.5/100

r = 0.035 rate per year,

Then solve the equation for A

A = P(1 + r/n)nt

A = 500.00(1 + 0.035/12)(12)(4)

A = 500.00(1 + 0.002916667)(48)

A = $575.02

Summary:

The total amount accrued, principal plus interest, with compound interest on a principal of $500.00 at a rate of 3.5% per year compounded 12 times per year over 4 years is $575.02.