Question

You deposit $2000 in an account earning 6% interest compounded monthly. How much will you have in the account in 15 years?

Answer 1

`\bf ~~~~~~ \textit{Compound Interest Earned Amount} \\\\ A=P\left(1+(r)/(n)\right)^(nt) \quad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\dotfill &\$2000\\ r=rate\to 6\%\to (6)/(100)\dotfill &0.06\\ n= \begin{array}{llll} \textit{times it compounds per year}\\ \textit{monthly, thus twelve} \end{array}\dotfill &12\\ t=years\dotfill &15 \end{cases} \\\\\\ A=2000\left(1+(0.06)/(12)\right)^(12\cdot 15)\implies A=2000(1.005)^(180)\implies A\approx 4908.19`