Question

Find the balance if you deposit $2500 in an account earning 3% interest MONTHLY for 20 years.

Remember: Calculate inside the parenthesis first, then the exponent (240th power), and then multiply it by 2500.

Answer 1

$4515

Explanation:

Given data

Principal=$2500

Rate= 3%

Time= 20years

The compound interest formula is given as

A=P(1+r)^t

substitute

A=2500(1+0.03)^20

A=2500(1.03)^20

A=2500*1.806

A=$4515

Hence the final Amount is $4515