Question

Brenda deposit ₱15,000.00 in a savings account which pays 4% compounded monthly. Find the accumulated interest after 10years. with solution sana

Answer 1

If Brenda deposits `₱15,000.00` in a savings account that pays `4%` interest compounded monthly, the accumulated interest after `10` years can be calculated using the formula for compound interest: `A = P(1 + r/n)^(nt)`, where `A` is the future value of the investment, `P` is the initial principal amount, `r` is the annual interest rate (as a decimal), `n` is the number of times the interest is compounded per year, and `t` is the number of years the money is invested for.

In this case, `P = 15000`, `r = 0.04`, `n = 12` (since the interest is compounded monthly), and `t = 10`. Plugging these values into the formula, we get:

```

A = 15000(1 + 0.04/12)^(12 * 10)

A ≈ 22265.07

```

So after `10` years, the accumulated interest would be `A - P = 22265.07 - 15000 = ₱7265.07`.

Answer 2

Step-by-step explanation: Compound interest formula = P*(1+r/n)^n*t, where:

- P = principal amount (initial investment amount).

- r = nominal annual interest rate.

- n = number of times interest is principally entered per year.

- t = number of years borrowed money.

Applying the above compound interest formula, after 10 years, you will get the amount:

= 15,000 * (1+4%/12)^(12*10) = 22363.49024