Question
Since 2007, a particular fund returned 13.8% compounded monthly. How much would a $4000 investment in this fund have been worth after 4 years?
Answers
Henry
P = Po*(1+r)^n
Po = $4000 = Initial principal.
r = (13.8%/12)/100% = 0.0115 = Monthly %
rate expressed as a decimal.
n = 12Comp/yr. * 4yrs. = 48 Compounding
periods.
Solve for Principal(P).
Po = $4000 = Initial principal.
r = (13.8%/12)/100% = 0.0115 = Monthly %
rate expressed as a decimal.
n = 12Comp/yr. * 4yrs. = 48 Compounding
periods.
Solve for Principal(P).