Question

How much would $200 interest compounded monthly be worth after 30 years

Answer 1

Given:

Principal (P)=$200

Rate of interest (r) =4%

time (t)=30 years

Number of times compounded per year(n) = 12

Required- the amount.

Step-by-step explanation:

First, we change the rate of interest in decimal by removing the "%" sign and dividing by 100 as:

`\begin{gathered} r=4\% \\ \\ =(4)/(100) \\ \\ =0.04 \end{gathered}`

Now, the formula for finding the amount is:

`A=P(1+(r)/(n))^(nt)`

Put the given values in the formula, we get:

`A=200(1+(0.04)/(12))^(12*30)`

Solving further, we get: