When 70 dollars is invested monthly with an annual compound interest rate of 12% compounded monthly what is the total amount of the investment at the end of the second month round the answer to two decimal places as needed.

Answer 1

To solve this problem, we can use the formula for compound interest:

A = P(1 + r/n)^(nt)

Where:
A = the total amount of the investment
P = the principal (amount invested monthly)
r = the annual interest rate (written as a decimal)
n = the number of times that interest is compounded per year
t = the number of years

In this case, the principal (P) is $70, the annual interest rate (r) is 12% or 0.12, the number of times interest is compounded per year (n) is 12 (compounded monthly), and the time (t) is 2 months or 2/12 years.

Substituting these values into the formula:

A = 70(1 + 0.12/12)^(12*(2/12))
A = 70(1 + 0.01)^1
A = 70(1.01)
A = 70.70

The total amount of the investment at the end of the second month is $70.70.

Answer 2

Since no one else likes to give out answers anymore, I will. These are for the unit 8 lesson 5 Saving and Investing Practice.

1) 142.11

2) 75

3) Peter and his wife should invest $500 monthly at 5.5% annual interest for 4 years. With no interest, it would take them 50 months to save up $25,000.

4) 150

5) 12,000