Question

You deposit $3000 in an account earning 8% interest compounded monthly. How much will you have in the account in

15 years?

Answer 1

Explanation

:Amount (A) A= p(1 + r/100)n where A is the amount, p is the principal, r is the rate which is 8% and n is the time.

Therefore, A=p(1+8/100)15 raised to the power of 15.

A= 3000(100+8/100)15

= 300x (108/100)15

= 300x (1.08)15, = $9,516.507