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$614.70 (assuming that the last cent is rounded up.)

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Michael Scalise

Lvl 12
∙ 2y ago
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chinedumarvellousoga...

Lvl 2
∙ 2y ago

First, let's start with the basic formula for calculating the simple interest for any investment; S.I=(P×R×T)/100, where P=Principal(i.e initial investment/capital), R=Interest Rate(by how much your cash will increase in value), T=Time.

Here, P=500(whatever currency you mean ), R=8%, T=4 years=4×12 months=48 months.

Note: You mentioned the fact that the interest is compounded monthly, which is why I converted Time(T) to months.

Using the above stated formula;

S.I=(P×R×T)/100=(500×8×48)/100

S.I=(192,000)/100=1,920.

Total worth would be=S.I + P(The interest should be added to the Principal/Capital).

Total=1,920+500=2,420.

Therefore the total worth of your 500(whatever currency) after 4 years is 2,420(same currency).

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Q: How much would 500 invested at 8 percent interest compounded monthly be worth after 4 years?
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