Question

Cooper is opening an online savings account to hold his $20,000 emergency fund. The online account pays 1.5% interest compounded monthly. If Cooper does not deposit or withdraw any money from the account, how much will be in the account in 25 years

Answer 1

After 25 years, Cooper will have $29,093.01 in his savings account.

Explanation:

While Cooper opened an emergency savings account of $ 20,000, which yields an annual interest of 1.5% compounded monthly, to determine how much money he will have in his account after 25 years, the following calculation must be performed:

X = 20,000 (1 + 0.015 / 12) 25x12

X = 29,093.01

Therefore, after the passage of 25 years, Cooper will have $ 29,093.01 in his savings account.