How much would 300 invested at 4 interest compounded monthly?

Answer 1

To calculate the future value of an investment of $300 at a 4% annual interest rate compounded monthly, you can use the formula ( A = P \left(1 + \frac{r}{n}\right)^{nt} ), where ( P ) is the principal amount ($300), ( r ) is the annual interest rate (0.04), ( n ) is the number of times interest is compounded per year (12), and ( t ) is the number of years. For example, after 1 year, the amount would be approximately ( A = 300 \left(1 + \frac{0.04}{12}\right)^{12 \times 1} ), which equals about $312.16. The total will increase with the duration of the investment.