Question

Rod is saving Php2000 in a bank at the end of each month which gives an interest of 1% compounded monthly.How much is the savings og Rod after 2 years? ​

Answer 1

Php2040.38

Explanation:

Given

`P = 2000` --- Principal

`r = 1\%` --- Rate

`t = 2\ years` --- Time

`n = 12` --- monthly

Required

Determine the amount at the end of two years

This is calculated as:

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

So, we have:

`A = 2000(1 + (1\%)/(12))^(12*2)`

`A = 2000(1 + (1)/(100*12))^(24)`

`A = 2000(1 + (1)/(1200))^(24)`

`A = 2000((1200+1)/(1200))^(24)`

`A = 2000((1201)/(1200))^(24)`

`A = 2000*1.02019`

`A = 2040.38`

Hence, the final amount is: Php2040.38