SOLUTION: You put $5000 in a savings account which earns compound interest at a rate of .5% per month. If you don't make any deposits or withdrawls, how much will you have in your account in
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-> SOLUTION: You put $5000 in a savings account which earns compound interest at a rate of .5% per month. If you don't make any deposits or withdrawls, how much will you have in your account in
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Question 837584: You put $5000 in a savings account which earns compound interest at a rate of .5% per month. If you don't make any deposits or withdrawls, how much will you have in your account in 30 years? Answer by mxgirl22(39) (Show Source):
You put $5000 in a savings account which earns compound interest at a rate of .5% per month. If you don't make any deposits or withdrawls, how much will you have in your account in 30 years?
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1st.) Get important information out of the question.
$5000 deposited into savings
0.5% interest rate: compounded per month
30 years
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2nd.) Use equation: A=P(1+r/n)^nt
P=Starting amount
n=Number of times it's compounded
r=(Interest)Rate
t=Time
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3rd.) Using equation from above, plug in the values you got from the problem. Change the percent into decimal form. Also n=12 since it's compounded monthly.
**Side note- I like to take care of exponents first on this type of problem since it's easy to make mistakes on this.
