Find the future value.
-$3364.54 invested for 9 years at 3% compounded monthly
A) $4389.96
B) $4398.60
C) $4405.94
D) $4402.99

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 (\$3364.54), $r$ is the annual interest rate (3% or 0.03), $n$ is the number of times the interest is compounded per year (12, since it's compounded monthly), and $t$ is the time the money is invested for in years (9). Plugging in the values, we get $FV = 3364.54(1 + \frac{0.03}{12})^{12*9}$, which calculates to approximately \$4405.94.

Find the Future Value