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Sauron [17]
3 years ago
6

Compare investing $1500 at 9% compounded monthly for 11 years with investing $1500 at 14% compounded monthly for 11 years.

Mathematics
1 answer:
kogti [31]3 years ago
4 0

Answer:

Final amount after 11 years = $4021.97

Step-by-step explanation:

We will use the formula to get the final amount after t years,

Final amount = a(1+\frac{r}{n})^{nt}

here a = Initial amount

r = Rate of interest

n = Number of compounding in a year

For Initial amount 'a' = $1500

r = 9%

t = 11 years

n = 12 [Compounded monthly]

F = 1500(1+\frac{9}{12})^{12\times 11}

  = $4021.97

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