Question

you deposit $300 each month into an account earning 8% interest compounded monthly. how much will you have in the account after 30 years!

Answer 1

To calculate the future value of the account after 30 years, use the formula for compound interest.

Step-by-step explanation:

To calculate the future value of your account after 30 years, we will use the formula for compound interest:

FV = P(1 + r/n)^(nt)

Where:

• FV = future value
• P = principal amount (the amount you initially deposit)
• r = annual interest rate (8% in this case)
• n = number of times interest is compounded per year (monthly compounding)
• t = number of years

Substituting the given values into the formula:

FV = 300(1 + 0.08/12)^(12*30)

FV = $222,242.95