When 70 dollars is invested monthly with an annual compound interest rate of 12% compounded monthly what is the total amount of the investment at the end of the second month round the answer to two decimal places as needed.
Since no one else likes to give out answers anymore, I will. These are for the unit 8 lesson 5 Saving and Investing Practice.
1) 142.11
2) 75
3) Peter and his wife should invest $500 monthly at 5.5% annual interest for 4 years. With no interest, it would take them 50 months to save up $25,000.
4) 150
5) 12,000
To solve this problem, we can use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
A = the total amount of the investment
P = the principal (amount invested monthly)
r = the annual interest rate (written as a decimal)
n = the number of times that interest is compounded per year
t = the number of years
In this case, the principal (P) is $70, the annual interest rate (r) is 12% or 0.12, the number of times interest is compounded per year (n) is 12 (compounded monthly), and the time (t) is 2 months or 2/12 years.
Substituting these values into the formula:
A = 70(1 + 0.12/12)^(12*(2/12))
A = 70(1 + 0.01)^1
A = 70(1.01)
A = 70.70
The total amount of the investment at the end of the second month is $70.70.