if $250.00 IS INVESTED AT 6% COMPOUNDED MONTHLY WHAT IS THE AMOUNT AFTER 8YEARS
To calculate the amount of money after 8 years with a monthly compounding interest rate of 6% on an investment of $250.00, you can use the formula for compound interest:
A = P(1 + r/n)^(n*t)
Where:
A = Final amount
P = Principal amount (initial investment)
r = Annual interest rate (as a decimal)
n = Number of times interest is compounded per year
t = Number of years
In this case, we have:
P = $250.00
r = 6% = 0.06 (convert percentage to decimal)
n = 12 (compounded monthly)
t = 8
Substituting the values into the formula:
A = $250.00 * (1 + 0.06/12)^(12*8)
Now, let's calculate this using a calculator or a spreadsheet program:
A ≈ $250.00 * (1 + 0.06/12)^(12*8)
A ≈ $250.00 * (1 + 0.005)^(96)
A ≈ $250.00 * (1.005)^(96)
A ≈ $250.00 * 1.488375
Therefore, the approximate amount after 8 years will be:
A ≈ $372.09
So, the amount after 8 years would be approximately $372.09.