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

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