How much would 300 invested at 4 percent interest compounded monthly be worth after 8 years?

Answer 1

The compound interest formula is

FV = P(1+i)^n

where

FV = Future Value

P = Principal

i = interest rate per compounding period

n = number of compounding periods.

Here you will need to calculate i by dividing the nominal annual interest rate by the number of compounding periods per year (that is, i = 4%/12).

Also, if the money is invested for 8 years and compounds each month, there will be 8*12 compounding periods.

Just plug the numbers into the formula. You can do it!