$24,000X0.04X30years (deposit of $24,000 and compound interest monthly of 4% for 30 years ?
a = 24000 [1 + (.04 / 12)]^(30 * 12)
4% interest, compounded monthly
Thank you Scott.
Thank you Scott
To calculate the compound interest on a deposit of $24,000 with a monthly interest rate of 4% over a period of 30 years, you can use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
A = the final amount (including both the principal and interest)
P = the principal amount (the initial deposit)
r = the annual interest rate (in decimal form)
n = the number of times interest is compounded per year
t = the number of years
In this case, the principal amount (P) is $24,000, the annual interest rate (r) is 4% (or 0.04 as a decimal), the number of times interest is compounded per year (n) is 12 (monthly compounding), and the number of years (t) is 30.
Plugging these values into the formula, we can calculate the final amount (A):
A = 24000(1 + 0.04/12)^(12*30)
Simplifying the calculation step by step:
A = 24000(1 + 0.003333)^(360)
A = 24000(1.003333)^(360)
A ≈ 24000(1.370370)
A ≈ 32968.88
Therefore, the final amount, including both the principal and compound interest, would be approximately $32,968.88 after 30 years.