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A credit union pays 8% per annum compound interest on all fixed deposits. A customer deposited $24 000 in an account. Calculate the TOTAL amount of money in the account at the end of two years. ​

User KennetsuR
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Answer:

To calculate the total amount of money in the account at the end of two years, we need to use the formula for compound interest:

A = P*(1 + r/n)^(n*t)

where:

A = the total amount of money at the end of the two-year period

P = the initial principal (the amount of the deposit) = $24,000

r = the annual interest rate = 8%

n = the number of times the interest is compounded per year = 1 (compounded annually)

t = the time period, in years = 2

Plugging in the numbers, we get:

A = $24,000 * (1 + 0.08/1)^(1*2)

A = $24,000 * (1.08)^2

A = $24,000 * 1.1664

A = $27,993.60

Therefore, the total amount of money in the account at the end of two years is $27,993.60.

Explanation:

User Webmat
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