Use the compound interest formula to compute the future value of the investment.
-$5500 at 8% compounded monthly for 7 years

Name: Use the compound interest formula to compute the future value of the investment. -$5500 at 8% compounded monthly for 7 years
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Question

Quizplus · Accepted Answer

The compound interest formula is $ A = P(1 + \frac{r}{n})^{nt} $. Here, $ P = 5500 $, $ r = 0.08 $, $ n = 12 $, and $ t = 7 $. Plugging in these values gives $ A = 5500(1 + \frac{0.08}{12})^{12 \times 7} \approx 9610.82 $.

Use the Compound Interest Formula to Compute the Future Value