## anonymous one year ago How much would $300 invested at 4% interest compounded monthly be worth after 8 years? Round your answer to the nearest cent. here's the equation: A(t)=P(1+r/n)^nt i just don't know what to put where please help • This Question is Closed 1. anonymous @Hero @mathstudent55 2. Hero What I mean to ask is, what do you think each variable in the formula means? 3. Hero Obviously t is in years, so 8 = t. You probably know that much at least. 4. anonymous is it a(8)=300(1+.06/1)^8 ?? 5. anonymous @Hero 6. Hero The 300 and the 8 is correct. 7. anonymous is that is? 8. anonymous it?* 9. Hero There's more to it of course. 10. Hero Okay, so the P is for the principal, which you figured out is$300. The r is the interest rate which is 4% or .04. And the n represents number of times compounded. You figure that out by multiply 8 years times 12 months per year. So n = 96.

11. anonymous

so 8=300(1+.04/1)^96?

12. Hero

Where do you get the "1" underneath the fraction? Isn't that supposed to be "n". What did we say n equals?

13. Hero

Actually, n = 12, not 96

14. anonymous

oh oops. 8=300(1+.04/12)^96 ?

15. Hero

So n represents number of times compounded per year which is 12. So A(8) = 300(1.04/12)^{96} is correct.

16. anonymous

is it 1.04 for the numerator? or 1+ .04/12?

17. Hero

Actually you have it right it's 1 + .04/12

18. Hero

I admit, I'm a little distracted atm. Not fully paying attention.

19. anonymous

okay. how do i solve it?

20. Hero

At this point, it's just plug and play if you have the right calculator you should be able to calculate A(8).

21. anonymous

am i solving for a?

22. Hero

You're finding A(8). Everything on the right side of the equation only has to be calculated.

23. anonymous

$A(8)=300(1+\frac{ .04 }{ 12 })^96$

24. anonymous

like this? i tried to put the 6 up next to the 9 but it didn't work

25. anonymous

@Hero

26. Hero

Use brackets

27. Hero

$$A(8)=300\left(1+\dfrac{ .04 }{ 12 }\right)^{96}$$

28. anonymous

i keep getting 51.61

29. anonymous

the answer choices are a) $412.92 b)$410.57 c) $308.10 d)$484.25

30. anonymous

do you get 51.61?

31. anonymous

@Hero

32. Hero

Hang on

33. Hero

I get 412.918...

34. anonymous

oh! okay. i see how you got that. thank you!!

35. Hero

You're Welcome bro.