Question

What is the future value of an account if $3,000 is invested at a rate of 8% compounded monthly

Answer 1

Answer:

≈$12601.72

Step-by-step explanation:

Use the compounded interest formula:

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

In our case,

P = 3000

r = 8% = 0.08

n = 12 (months per year)

t = 18 (years in total)

Therefore, A ≈ $12601.72 (2.d.p.)