Answer :
900(1.00354)^144= $1497.41
Explanation:
Yearly rate is 4.25%
So monthly rate is 4.25%/12 = 0.354%
Because money is compounded monthly, the monthly rate is how much on top of your principle you will get each month. So at the end of the month you will get 1.00354 times the starting monthly value.
You begin with 900
So 900(1.00354) but you get the interest and compound the principle each month and do that for 12 years, that is 144 total times (12x12). So
900(1.00354)^144
Explanation:
Yearly rate is 4.25%
So monthly rate is 4.25%/12 = 0.354%
Because money is compounded monthly, the monthly rate is how much on top of your principle you will get each month. So at the end of the month you will get 1.00354 times the starting monthly value.
You begin with 900
So 900(1.00354) but you get the interest and compound the principle each month and do that for 12 years, that is 144 total times (12x12). So
900(1.00354)^144
The compounded monthly exists at 1497.41.
What is compounded monthly?
In many cases, it exists compounded monthly, which indicates that the interest exists added back to the principal each month. In order to estimate compounding more than one time a year, we utilize the subsequent formula:
[tex]$A = P ( 1 + r/ n )^{nt}[/tex]
Yearly rate = 4.25%
Monthly rate = 4.25/12 = 0.354%
Money exists compounded monthly, the monthly rate exists how much on top of your principles you will earn each month. So at the end of the month, you will earn 1.00354 times the beginning monthly value.
You start with 900.
So 900(1.00354) but you earn the interest and compound the principle each month and accomplish that for 12 years, that exists 144 total times (12 [tex]*[/tex] 12).
So, [tex]900(1.00354)^{144} = 1497.41[/tex]
Therefore, compounded monthly exists 1497.41.
To learn more about compounded monthly
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