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An investment of $40,00D is made in a fund that pays 6.8% interest compounded monthly. What is the value of the
investment after 13 years?
A 57.354
B
95,551
707444
112,895
720,209

Respuesta :

anthougo

The value of the investment after 13 years in a fund that pays 6.8% interest compounded monthly is B. $95,551.

What is compound interest?

Compound interest is the interest that is accrued on both principal and previous interests.

Using compound interest, the principal amount continues to increase by the additional periodic interests, which are added to the principal, until the maturity period

Data and Calculations:

N (# of periods) = 156 months (13 x 12)

I/Y (Interest per year) = 6.8%

PV (Present Value) = $40,000

PMT (Periodic Payment) = 0

Settings

C/Y (# of times interest compound per year) = 12

Results:

FV = $95,551 ($40,000 + $55,551)

Total Interest $55,551

Thus, the value of the investment after 13 years in a fund that pays 6.8% interest compounded monthly is B. $95,551.

Learn more about compound interests at https://brainly.com/question/24274034

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