Question 116885
A=P(1+R/N)^RT
A=4,000(1+.07/12)^.07*8
A=4,000(1+.0058333)^.56
A=4,000(1.0058333)^.56
A=4,000*1.00326
A=4,013.05 WHICH I BELIEVE IS THE WRONG ANSWER.
I BELIEVE THE FORMULA SHOULD BE:
A=P(1+R/N)^NT
A=4,000(1+.07/12)^12*8
A=4,000(1.0058333)^96
A=4,000*1.74782
A=6,991.28 THIS IS A MUCH BETTER RETURN ON INVESTMENT FOR MONTHLY COMPOUNDING.