You deposit $2000 in an account that earns 5% annual interest. Find the balance in the account after 8 years if the interest is

Question

3 years ago

10

compounded monthly

1 answer:

Marta_Voda [28] · Answer 1 · 2022-03-22T17:12:24+03:00

8 0

FORMULA FOR COMPOUND INT. = A = P ( 1 + $\frac{R}{100}$ ) $^{n}$

= P = 2000, R = $\frac{5}{12}$ ( as it is compounded monthly ), N= 8 × 12 = 96

= A = 2000 $($ 1 + $\frac{5}{1200}$ $)^{96\\}$ = $\frac{2000}{1}$ × ( $\frac{1205}{1200}$ ) $^{96}$

= 2981.17