SOLUTION: If I invested my savings of $6516.90 in an account with 6% interest which compounds monthly, how much money would I have in 10 years, 20 years and 30 years?
Algebra.Com
Question 766418: If I invested my savings of $6516.90 in an account with 6% interest which compounds monthly, how much money would I have in 10 years, 20 years and 30 years?
Answer by Theo(13342) (Show Source): You can put this solution on YOUR website!
formula to use is:
fv = pv * (1 + air/c) ^ (y * c)
fv = future value
pv = present value
apr = annual percent interest rate
air = annual interest rate = apr / 100
c = number of compounding periods per year.
y = number of years
y1 = 10
y2 = 20
y3 = 30
pv = 6516.90
apr = 6
air = .06
in your problem, this is what happens:
y1 * c = 10 * 12 = 120
y2 * c = 20 * 12 = 240
y3 * c = 30 * 12 = 360
air / c = .06 / 12 = .005
1 + air / c = 1 + .005 = 1.005
your formulas become:
fv1 = 6516.90 * (1.005)^120 = 11856.83
fv2 = 6516.90 * (1.005)^240 = 21572.27
fv3 = 6516.90 * (1.005)^360 = 39248.52
RELATED QUESTIONS
If my bank account returns 3% but compounds interest daily how much money must I deposit... (answered by lwsshak3)
If $1 was invested in a savings account in 1900 at an annual interest rate of 1%, how... (answered by rfer)
A savings account accrues interest at a rate of 3.0% yearly. If someone opens an account... (answered by rfer)
I plan on retiring in 35 years. I hope to have $750,000 in my savings account when I... (answered by Boreal)
Chris deposited $3000 in a savings account which pays 2.4% interest compounded monthly .... (answered by josmiceli)
I have invested a sum of money into an account that gives 5.5% interest. I invested... (answered by mananth)
chuan invested some money in a savings account earning 6% interest and an equal amount of (answered by mananth)
I have invested $1200 in a bank acount with an interest rate 4.5% compounded monthly.... (answered by Theo,MathTherapy)
if i had $500.00 in a bank savings account 20 years ago how much money would I have... (answered by Fombitz)