+0  
 
 #1
avatar+1015 
+1

The formula for compound interest is A = P(1 + r/100)^nt where A is the answer, P is the principle amount which is 300$, r is the compounded rate, n is the amount of times compounded per year, and t is the number of years.

 

Plugging in our values we have A = 300(1 + 0.05)^4. The answer is 364.65$

 Sep 20, 2022
 #2
avatar
0

4 years  x  12 months ==48 months

 

Use this formula to find the FV of 48 payments:

 

P=300;   R=0.05/12;  N=4*12;    FV=P*((1 + R)^N - 1)/ R

 

FV ==$15,904.47 - FV of 48 payments of $300 each

 

Note: I have taken 5% APR as "Compounded Monthly"

 Sep 20, 2022

19 Online Users