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? Use the compound interest formula A = P (1 + r over n) nt.

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Mathematics

Sage Best

6 December, 01:29

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? Use the compound interest formula A = P (1 + r over n) nt.

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Answers (1)

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Atticus Nicholson · Answer 1

Step-by-step explanation:

Since you have the formula it's just plugging in. If you'd like to know why the formula works let me know and i can give an explanation, or at least link a video.

A=P (1+r/n) ^ (nt)

P is the starting money, r is the interest rate in decimal form, n is the number of times per year compounded and t is number of years.

P = 240

r =.09

n = 12

t = 14

A = 240 (1 + (.09/12) ^ (12*14)

A = 240 (1 +.0075) ^168

A = 240 (1.0075) ^168

A = 240*3.5089

A = 842.136

So you wind up with $842.14