SOLUTION: if $1,000 is invested at an interest rate of 10% per year, compounded monthly, find the amount of the investment at the end of 4 years
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Question 1162443: if $1,000 is invested at an interest rate of 10% per year, compounded monthly, find the amount of the investment at the end of 4 years
Answer by greenestamps(13198) (Show Source): You can put this solution on YOUR website!
A = future value
P = beginning principal
r = periodic interest rate
n = number of compounding periods
A is what we need to find
P is $1000
r is 1/12 of 10% (1/12 of 0.10), since the period is monthly
n is 4*12 = 48, the number of months (periods) in 4 years
Use a calculator....
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