You deposit $2000 in an account that earns 5% annual interest. Find the balance in the account after 8 years if the interest is compounded monthly

Question

asked Apr 13, 2022 180k views

1 Answer

Storoj · Answer 1 · 2022-04-18T14:35:00+0000

FORMULA FOR COMPOUND INT. = A = P ( 1 +
(R)/(100) )
^(n)

= P = 2000, R =
(5)/(12) ( as it is compounded monthly ), N= 8 × 12 = 96

= A = 2000
1 +
(5)/(1200)
$)^(96\\)$ =
(2000)/(1) × (
(1205)/(1200) )
^(96)

= 2981.17