Asked by Abbie Mulbarger on Apr 26, 2024
Verified
If Murphy puts $45,000 into an investment that earns 12% compounded monthly, and after three years he withdraws $30,000, how much money will the investment be worth seven years after the withdrawal?
A) $79,316
B) $49,506
C) $92,142
D) $69,202
E) $118,517
Compounded Monthly
The method of accruing interest on the initial amount of a loan or deposit, thereby earning interest on the accrued interest, on a monthly basis.
12%
A numerical value representing twelve parts per hundred, often used to denote a percentage rate, such as an interest rate or growth rate.
7 Years
A time period of seven years, often used in the context of loans, investments, or tenure.
- Comprehend and utilize the principle of fluctuating interest rates over time in a financial setting.
- Compute the future worth of investments considering designated rates and durations.
Verified Answer
Learning Objectives
- Comprehend and utilize the principle of fluctuating interest rates over time in a financial setting.
- Compute the future worth of investments considering designated rates and durations.
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