SOLUTION: Mrs. Eubanks recieved $2000 as a wedding gift form her uncle. She wants to invest this money in a bank that will pay 4.5% interest compounded monthly. How much should she expect to
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Question 602585: Mrs. Eubanks recieved $2000 as a wedding gift form her uncle. She wants to invest this money in a bank that will pay 4.5% interest compounded monthly. How much should she expect to have in the account after 20 years?
I am interested in knowing the formula to find the compounded interest and how to solve the answer. Answer by stanbon(75887) (Show Source):
You can put this solution on YOUR website! Mrs. Eubanks received $2000 as a wedding gift form her uncle. She wants to invest this money in a bank that will pay 4.5% interest compounded monthly. How much should she expect to have in the account after 20 years?
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A(t) = P(1+(r/n))^(nt)
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A(20) = 2000(1+(0.045/12))^(12*20)
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A(20) = 2000(1+0.00375)^(240)
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A(20) = 2000(2.4555)
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A(20) = $4910.93
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Cheers,
Stan H.
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