Find the future value.
-$4383.95 invested for 12 years at 5% compounded monthly
A) $7978.13
B) $7958.42
C) $7929.36
D) $7872.94

Question

Quizplus · Accepted Answer

The future value of an investment is calculated using the formula $FV = P(1 + \frac{r}{n})^{nt}$, where $P$ is the principal amount (\$4383.95), $r$ is the annual interest rate (5% or 0.05), $n$ is the number of times the interest is compounded per year (12 for monthly), and $t$ is the time the money is invested for (12 years). Plugging in the values, $FV = 4383.95(1 + \frac{0.05}{12})^{12*12}$, which calculates to approximately \$7978.13.

Find the Future Value