Question

You deposit $500 that pays 4.44% Interest monthly, how much do you have in your account after 20 years?

Answer 1

$1,213.14

Explanation:

You are going to want to use the compound interest formula, which is shown below.

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

P = initial balance

r = interest rate

n = number of times compounded annually

t = time

Now lets plug in the values into the equation:

`500(1+(.0444)/(12))^(20(12))` = 1,213.14

Your answer is $1,213.14.