Question

You deposit $2000 in an account earning 6% interest compounded monthly. How much will you have in the account in 15 years?

Answer 1

$\bf ~~~~~~ \textit{Compound Interest Earned Amount} \\\\ A=P\left(1+\frac{r}{n}\right)^{nt} \quad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\dotfill &\ 2000\\ r=rate\to 6\%\to \frac{6}{100}\dotfill &0.06\\ n= \begin{array}{llll} \textit{times it compounds per year}\\ \textit{monthly, thus twelve} \end{array}\dotfill &12\\ t=years\dotfill &15 \end{cases} \\\\\\ A=2000\left(1+\frac{0.06}{12}\right)^{12\cdot 15}\implies A=2000(1.005)^{180}\implies A\approx 4908.19$