Question

If $240 is invested at an interest rate of 9% per year and is compounded monthly, how much will the investment be worth in 14 years?
$68.39

$704.28

$842.13

$846.10

Answer 1

Monthly Compound Interest Formula:

\[A = P\left(1 + \frac{r}{12}\right)^{12t}\]

A=Account Balance
P=Principal
r=rate (decimal form)
t=time (in years)