Question

Find the accumulated value of an investment of $5000.00 at 5% compounded monthly for 8 years.

Answer 1

Total = Principal * (1 + (rate /n))^n*years
where n = 12 for 12 months per year
Total = 5,000 * (1 + (.05/12))^12*8
Total = 5,000 * (1.0041666667)^96
Total = 5,000 * 1.4905854727
Total = 7,452.93

And here's a calculator to check your answer

Answer 2

thank you!!!

Answer 3

Total = Principal * (1 + (rate /n))^n*years
where n = 12 for 12 months per year
Total = 5,000 * (1 + (.05/12))^12*8
Total = 5,000 * (1.0041666667)^96
Total = 5,000 * 1.4905854727
Total = 7,452.93

And here's a calculator to check your answer
http://www.1728.org/compint.htm

You are welcome :-)