What is the value of a $500 investment with a 9% interest rate that is compounded monthly for 3 years? HELP OMG BRU

$654.32 (to the nearest cent)

Step-by-step explanation:

Compound interest is based on the principal amount and the interest that accumulates on it in every period.

Monthly Compound Interest formula:

where:

P = principal amount

r = annual interest rate (as a decimal)

n = frequency or number of times the interest is compounded annually

t = overall tenure in years

So for this problem:

P = 500

r = 9 ÷ 100 = 0.09

n = 12

t = 3

Therefore,  

Compound Interest =

                                = 500 x (1 + (0.09/12))^(12 x 3) - 500

                                = 500 x (1.0075)^36 - 500

                                = 154.3226855

So the value of the $500 investment = principal amount + compound interest

= 500 + 154.3226855

= $654.32 (to the nearest cent)

answer: the value should be used for i in the formula of calculation the monthly payment , the interest rate per period is 0.85.

step-by-step explanation:

the given rate of interest i= 85%

in calculating the monthly payment for a loan with an interest rate compounded monthly, the value of the interest rate per period we use in the formula must be in decimal form.

to convert it in decimal, we divide it by 100, we get

hence, the value should be used for i in the formula of calculation the monthly payment , the interest rate per period is 0.85.

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step-by-step explanation: