Question

You deposit ​$18,000 into a savings account at a bank that has a rate of 66​% compounded monthly. Find the amount of money in the account after 44 years.

Answer 1

Equation you are going to use is
`A = P(1+ (r)/(n)) ^(nt)` where A is the amount earned, P is the initial/principal amount, R is the rate, N is the number of periods the amount is compounded, and t is the time in years.

P = 18000, R = 66% or .66, N = monthly so 12, T = 44 years.

So plugging it we get
`A = 18000( 1 + (.66)/(12))^(44*12)`.

Type that into your calculator or an excel sheet for your answer. My calculator (a TI-36X Pro) gives me 3.40856195
`_(E)`16 which isn't a very practical answer for money calculations.