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Find the value of an investment of $4000 at 5% compounded monthly for 8 years.?


Find the value of an investment of $4000 at 5% compounded monthly for 8 years.?

5,962.34
...
check out this website. I entered in all your information and got this answer...be sure to put in the interest compounds monthly...as this will change your answer.

http://www.moneychimp.com/calculator/com...

Initial Investment $4000

Year 1$ 4,204.65
Year 2 $ 4,419.77
Year 3 $ 4,645.89
Year 4 $ 4,883.58
Year 5$ 5,133.43
Year 6$ 5,396.07
Year 7$ 5,672.14
Year 8$ 5,962.34

5962.34

$5909?

? = 4000 * (1 + .05/12) ^ 96

Since it's compounded monthly, you divided the interest rate of 5% by 12 and you raise it over 96 to represent 96 periods (8 year times 12 months is 96 periods -- the tricky part is remaining since you divided the interest rate by 12, you have to increase the period by a factor of 12).

The answer is 5,962.34, which is what people posted earlier.

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