Question

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?

Answer 1

`~~~~~~ \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`