You deposit $125.00 in an account earning 4.5% interest compounded monthly. How much money (principle plus interest) do you have in this account at the end of 38 months?
4.5% compounded monthly is i=0.045/12=0.00375 per month.
n=38 months
Present value, Pv=125
Future value,
Fv = Pv(1+i)^n
You deposit $125.00 in an account earning 4.5% continuously compounded interest. How much money (principle plus interest) do you have in this account at the end of 38 months?
you deposit $125.00 in an account earning 4.5% continuously compounded interest. How many onths does it take to double your money? That is, principle plus interest equals $250.
You deposit $555.00 in an account earning 5.5% interest compounded money (principle plus interest) do you have in this account at the end of 55 months?
To calculate the amount of money in the account at the end of 38 months, we can use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
A = the future value of the investment/loan, including interest
P = the principal amount (initial deposit)
r = annual interest rate (decimal form)
n = number of times that interest is compounded per year
t = number of years
In this case, the principal amount is $125.00, the annual interest rate is 4.5% (or 0.045 as a decimal), the interest is compounded monthly (so n = 12), and the time period is 38 months (approximately 3.1667 years).
Substituting these values into the formula:
A = 125(1 + 0.045/12)^(12*3.1667)
Now, let's solve the equation:
A ≈ 125 * (1 + 0.00375)^(38.0004)
A ≈ 125 * (1.00375)^(38.0004)
A ≈ 125 * 1.155733386
A ≈ $144.47
Therefore, at the end of 38 months, including the principal and interest, you would have approximately $144.47 in the account.