Answer:
$298, 597.12
Explanation:
The future value of 32,000 compounded monthly at 14 % interest
14% compounded monthly means interest will be earned every month. The monthly rate will be 14% divided by 12.
compounding every month implies 12 times per year. In 16 years, the interest will be compounded 12 x 16 times.
The formula for future value
FV= PV x (1+ r)n
in this case
PV = $32,000
interest rate : 14% /12= 0.0117
period : 12 x 16= 192
FV= $32,000 X (1 + 0.0117) 192
=32,000 x (1.0117) 192
=32,000 X 9.33116
=$298, 597. 12
