What’s the future value of $2,000 after 3 years if the appropriate interest rate is 8%, compounded monthly?

Answer 1

The question is too vague and can be interpreted a number of ways.

If you mean for the monthly interest rate to be created by simply dividing the stated annual interest rate by 12 -- which doesn't make sense to me, but seems to be what is implied -- the formula would be:

2000 * ( 1 + ( 0.08 / 12 ) ) ^ 36 = $2,540.47

If the 8% is truly an annual rate, then you would want the formula below, because an annual rate is merely a monthly compounded rate compounded over 12 months:

2000 * ( 1.08 ^ 3 ) = $2,519.42

Or, it could be stated as a monthly formula:

2000 * ( ( 1.08 ^ ( 1 / 12 ) ) ^ 36 ) = $2,519.42

Now, if you REALLY mean 8% per month, the value would be:

2000 * ( 1.08 ^ 36 ) = $31,936.34

Answer 2

How regularly is semi in step with annum? the 1st time it compounds it rather is going to likely be well worth $2160 then $2,332.8 and so on $2,519.40 two $2,720.ninety 8 $2,938.sixty six $3,192.fifty six If semi in step with annum is two circumstances a 12 months then it is how plenty it may be