Calculate the future value of an investment of $5,000 at 0.8% per year, compounded monthly, after 8 years. Round your answer to the nearest cent.
A)$5,330.35
B) $5,202.20
C) $5,329.10
D) $5,687.47
E) $4,659.11

Question

Calculate the future value of an investment of $5,000 at 0.8% per year, compounded monthly, after 8 years. Round your answer to the nearest cent. ​
A)$5,330.35
B) $5,202.20
C) $5,329.10
D) $5,687.47
E) $4,659.11

Quizplus · Accepted Answer

The future value of an investment can be calculated using the formula FV = P(1 + r/n)^(nt), where P is the principal amount ($5,000), r is the annual interest rate (0.8% or 0.008), n is the number of times the interest is compounded per year (12 for monthly), and t is the time the money is invested for (8 years). Plugging in the values, FV = $5,000(1 + 0.008/12)^(12*8) ≈ $5,330.35.

Calculate the Future Value of an Investment of $5,000 at 0.8