Answer :
The amount when 500 invested at 9% interest compounded monthly be worth after 4 years will be $715.7.
What is compound interest?
Compound interest is the interest on a loan or deposit calculated based on the initial principal and the accumulated interest from the previous period.
We know that the compound interest is given as
[tex]\rm A = P \left ( 1 + \dfrac{r}{n} \right ) ^{nt}[/tex]
Where A is the amount, P is the initial amount, r is the rate of interest, and t is the number of years.
For interest compounded monthly, the value of n is 12.
The amount when 500 invested at 9% interest compounded monthly be worth after 4 years will be
[tex]\rm A = 500 \left ( 1 + \dfrac{0.09}{12} \right ) ^{12 \times 4}[/tex]
Simplify the equation, then we have
A = 500 (1.0075)⁴⁸
A = 500 x 1.4314
A = $715.70
The amount when 500 invested at 9% interest compounded monthly be worth after 4 years will be $715.7.
More about the compound interest link is given below.
https://brainly.com/question/25857212
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