Problema Solution
Sunfresh Markets made a $13,000.00 investment in a compound interest account paying annual interest at 6% but compounded monthly. Use the table below to determine the value of its investment at the end of 8 months.
Answer provided by our tutors
P = $13,000 the principal
r = 0.06 or 6% annual interest
t = 8 months
A = the future value
A = P(1 + r/12)^t
A = 13000(1 + 0.06/12)^8
A = $13,529.19
The value of the investment at the end of 8 months is $13,529.19.