198k views
16 votes
You deposit $2,000 into a bank account that will bay you 4. 8% interest APR ("annual percentage rate") compounded monthly. How much money will you have in 10 years?

User Rekildo
by
8.4k points

1 Answer

6 votes


~~~~~~ \textit{Compound Interest Earned Amount} \\\\ A=P\left(1+(r)/(n)\right)^(nt) \quad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\dotfill &\$2000\\ r=rate\to 4.8\%\to (4.8)/(100)\dotfill &0.048\\ n= \begin{array}{llll} \textit{times it compounds per year}\\ \textit{monthly, thus twelve} \end{array}\dotfill &12\\ t=years\dotfill &10 \end{cases} \\\\\\ A=2000\left(1+(0.048)/(12)\right)^(12\cdot 10)\implies A=2000(1.004)^(120)\implies A\approx 3229.06

User Chuck Claunch
by
7.8k points

No related questions found

Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

9.4m questions

12.2m answers

Categories