benllneb
Answered

Compare investing [tex]$500 at 9% compounded monthly for 16 years with investing $[/tex]500 at 13% compounded monthly for 16 years.
The final amount after investing at 9% is $
(Type an integer or a decimal. Round to the nearest cent as needed.)



Answer :

lexie2fine

Answer:

To calculate the future value of the investment, we can use the formula:

FV = PV × (1 + r)^n

Where: FV = Future Value PV = Present Value (initial investment) = $500 r = monthly interest rate = 9%/year = 0.09/12 = 0.0075 (monthly rate) n = number of periods = 16 years × 12 months/year = 192 months

Plugging in the values, we get:

FV = $500 × (1 + 0.0075)^192 ≈ $2,531.19

So, the final amount after investing $500 at 9% compounded monthly for 16 years is approximately $2,531.19.

Explanation: