Question

Rod is saving Php2000 in a bank at the end of each month which gives an interest of 1% compounded monthly.How much is the savings og Rod after 2 years? ​

Answer 1

Answer:

Php2040.38

Step-by-step explanation:

Given

$P = 2000$ --- Principal

$r = 1\%$ --- Rate

$t = 2\ years$ --- Time

$n = 12$ --- monthly

Required

Determine the amount at the end of two years

This is calculated as:

$A = P(1 + \frac{r}{n})^{nt}$

So, we have:

$A = 2000(1 + \frac{1\%}{12})^{12*2}$

$A = 2000(1 + \frac{1}{100*12})^{24}$

$A = 2000(1 + \frac{1}{1200})^{24}$

$A = 2000(\frac{1200+1}{1200})^{24}$

$A = 2000(\frac{1201}{1200})^{24}$

$A = 2000*1.02019$

$A = 2040.38$

Hence, the final amount is: Php2040.38