Use Compound Interest Formulas
Use the compound interest formulas A $$A = P \left( 1 + \frac { r } { n } \right) \text { and } A = P e ^ { r t } \text { to solve }$$
-Find the accumulated value of an investment of $5000 at 5% compounded monthly for 8 years.
A)$7452.93
B)$12,911.25
C)$9093.60
D)$8060.16

Question

Quizplus · Accepted Answer

The correct formula to use for this problem is $A = P \left(1 + \frac{r}{n}\right)^{nt}$, where $P = 5000$, $r = 0.05$ (5% as a decimal), $n = 12$ (compounded monthly), and $t = 8$ years. Plugging these values into the formula gives $A = 5000 \left(1 + \frac{0.05}{12}\right)^{12*8}$, which calculates to approximately $7452.93.

Use Compound Interest Formulas Use the Compound Interest Formulas A A =

Use Compound Interest Formulas
Use the Compound Interest Formulas A A =