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  3. 4b. b. compounding monthly means that there a

4b. b. Compounding monthly means that there are twelve interest...

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Finance

4b.
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b. Compounding monthly means that there are twelve interest payments per year. So, \\( n=12(5)=60 \\) and \\( i=0.08 / 12=0.00666 \\overline{6} \\) \\[ \\begin{array}{l} F V=P V(1+i)^{n} \\\\ F V=1,000\\left(1+\\frac{0.08}{12}\ ight)^{60} \\\\ F V=1,000(1.4898457086) \\\\ F V=1489.8457086 \\end{array} \\] Therefore, rounded to the nearest cent, the final answer is \\$

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