Medal to whoever can provide correct answer or help me
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

Question

Medal to whoever can provide correct answer or help me
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

anonymous · Answer

A=P(1+rt)

anonymous · Answer

^that equation is going to help you a lot with these types of problems
I can explain it in full, give me a second :)

anonymous · Answer

P is the principal (or starting amount) r is the interest rate, and t is the number of times it is compounded annually. So let's plug in the numbers

mertsj · Answer

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

mertsj · Answer

$$A= 240(1+\frac{.09}{12})^{12(9)}$$

anonymous · Answer

^that is correct, sorry forgot that detail! but still we can just plug in our numbers for the answer.

mertsj · Answer

$$A=240(1+.0075)^{108}$$

anonymous · Answer

so your answer is 842.1325...

anonymous · Answer

which looks like C in this situation :) cheers!

anonymous · Answer

Thank you so much. Could yu help me with a few more questions like this? If it's too much trouble then it's okay :)

anonymous · Answer

Just keep in mind the formula A=P(1+r/n)^(n*t) 
P=principal
r=interest rate
n= number of times per year it is compounded (12 if monthly 4 if quarterly 2 if semiannual etc)
t=number of years
and it becomes quite simple, but yes I can help :)

anonymous · Answer

If $396 is invested at an interest rate of 13% per year and is compounded continuously, how much will the investment be worth in 3 years? 
$584.88
$583.66
$581.27
$268.11

anonymous · Answer

sorry, I'm at work, had a customer, but I'm back! 
Alright, so we can plug these numbers in for the answer.

anonymous · Answer

ooh, compounded continuously, so we may need to make a minor change to our equation. Usually when we see that something is compounded continuously we will use e (there is a button for e on your graphing calculator) A=Pe^rt but the rest is the same 
P = principal amount (initial investment)
r = annual interest rate (as a decimal)
t = number of years
A = amount after time t

anonymous · Answer

so plug in to your graphing calc 396e^(.13*3)

anonymous · Answer

and you get 584.8843944, which means your answer would be A) $584.88