Question

You deposit $4000 in an account earning 8% interest compounding monthly. How much will you have in the next 10 years

Answer 1

.

In this case:

`\begin{gathered} P=\$4000 \\ r=8\%=0.08 \\ t=10 \\ n=12 \end{gathered}`

Applying the formula, the compound interest can be calculated as follows:

`\begin{gathered} A=4000(1+(0.08)/(12))^((12*10)) \\ A=8878.56 \end{gathered}`

The amount in the account will be $8,878.56.