Question

How much would $200 invested at 4% interest compounded monthly be worth after 8 years? Round your answer to the nearest cent.
a(t)=p(1+r/2)^nt
A. $205.40
B. $273.71
C. $322.83
D. $275.28

Answer 1

r = 4% = 0.04

compounded monthly = 12 times per year, for t = 8 years

Answer 2

principle P = 200

Answer 3

If you put those values in you get
\[a(8) = 200*(1+\frac{ 0.04 }{ 12 })^{12*8}\]

Answer 4

Would it be A?

Answer 5

hmm

Answer 6

1+4/1200 = 301/300

\[a(8) = 200*(\frac{ 301 }{ 300 })^{96}\]

with a calculator i got a(8) is about 275.279