Question

You deposit 200 each month into an account earning 6% interest compounded monthly how much will you have In The account in 20 years

Answer 1

Answer: 773,935.40

Explanation:

formula for future value: p=monthly deposit r=rate(in decimal form and divided by 12 because it is compounded monthly) n=time compounded (monthly), t=number of years

= P ((1+r)^nt-1)/r

= 200 ((1+0.005)^(12)(20) - 1) / 0.005

=773,935.40