document.write( "Question 540615: Find the amount if $400 is invested at 13% compounded monthly for 8 months. \n" ); document.write( "

Algebra.Com's Answer #353972 by jpg7n16(66) $\"\"$ $\"About$

You can put this solution on YOUR website!
For this problem, you'd use the \"compounding\" formula:
\n" ); document.write( " $\"p%2A%28%281%2Bi%29%5En%29=x\"$
\n" ); document.write( "\"x\" is the future amount of money. That's what we're solving for. (x=???)
\n" ); document.write( "\"P\" is the orignal amount (p=$400)
\n" ); document.write( "\"i\" is the rate of compounding interest each period. The problem says 13%, but how often does it compound? Monthly. So you need to divide it by 12. $\"i=.13%2F12\"$
\n" ); document.write( "\"n\" is the number of compounding periods. The problem gives you 8 months, and thankfully it's compounded monthly, so nothing to do here (n=8)
\n" ); document.write( "Then it's just a matter of plugging in your pieces back into the formula, and solving for X.
\n" ); document.write( " $\"p%2A%28%281%2Bi%29%5En%29=x\"$
\n" ); document.write( " $\"400%2A%28%281%2B%28.13%2F12%29%29%5E8%29=x\"$
\n" ); document.write( " $\"400%2A%281.010833%5E8%29=x\"$
\n" ); document.write( " $\"400%2A%281.090025%29=x\"$
\n" ); document.write( " $\"x=436.01\"$
\n" ); document.write( "After 8 months, you would have $436.01.\r
\n" ); document.write( "\n" ); document.write( " \n" ); document.write( "

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