How much would 200 invested at 5 percent interest compounded monthly after 9 years?

Answer 1

To calculate the future value of an investment compounded monthly, you can use the formula: ( A = P(1 + \frac{r}{n})^{nt} ), where ( A ) is the amount of money accumulated after n years, including interest; ( P ) is the principal amount ($200); ( r ) is the annual interest rate (0.05); ( n ) is the number of times that interest is compounded per year (12); and ( t ) is the number of years the money is invested (9). Plugging in the numbers, the future value will be approximately $319.84 after 9 years.