Question

You deposit $5000 in an account earning 8% interest compounded monthly. How much will you have in the account in 15 years?

Answer 1

$\bf ~~~~~~ \textit{Compound Interest Earned Amount} \\\\ A=P\left(1+\frac{r}{n}\right)^{nt} \quad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\dotfill &\ 5000\\ r=rate\to 8\%\to \frac{8}{100}\dotfill &0.08\\ n= \begin{array}{llll} \textit{times it compounds per year}\\ \textit{monthly, thus twelve} \end{array}\dotfill &12\\ t=years\dotfill &15 \end{cases}$

$\bf A=5000\left(1+\frac{0.08}{12}\right)^{12\cdot 15}\implies A=5000(1.00\overline{66})^{180}\implies A\approx 16534.61$