Description
Question:
To what amount will the following investment accumulate? $16,999, invested today for 7 years at 3.34 percent, compounded monthly
Answer:
Compound interest formula: A = P (1 + r/n) (nt)
Where:
A = the future value of the investment/loan, including interest
P = the principal investment amount (the initial deposit or loan amount)
r = the annual interest rate (decimal)
n = the number of times that interest is compounded per year
t = the number of years the money is invested or borrowed for
A = 16999*(1 + 3.34/1200)^(7*12) = 21559.53
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