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How much would $200 interest compounded monthly be worth after 30 years

How Much Would 200 Interest Compounded Monthly Be Worth After 30 Years class=

Sagot :

Given:

Principal (P)=$200

Rate of interest (r) =4%

time (t)=30 years

Number of times compounded per year(n) = 12

Required- the amount.

Explanation:

First, we change the rate of interest in decimal by removing the "%" sign and dividing by 100 as:

[tex]\begin{gathered} r=4\% \\ \\ =\frac{4}{100} \\ \\ =0.04 \end{gathered}[/tex]

Now, the formula for finding the amount is:

[tex]A=P(1+\frac{r}{n})^{nt}[/tex]

Put the given values in the formula, we get:

[tex]A=200(1+\frac{0.04}{12})^{12\times30}[/tex]

Solving further, we get:

[tex]undefined[/tex]

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