Today you deposited $5000 into a savings account paying 12% interest. How much should you have in 15 years?
This question is woefully out of date. Today savings accounts pay less than 1% annually.
27367.83
$9000.00
To calculate the amount of money you will have in the savings account after 15 years, you can use the compound interest formula:
A = P(1 + r/n)^(nt)
Where:
A = the final amount of money you will have
P = the initial amount of money you deposited ($5000)
r = the annual interest rate (12% or 0.12 as a decimal)
n = the number of times that interest is compounded per year (assuming it is compounded annually, so n = 1)
t = the number of years (15 in this case)
Using this formula:
A = $5000(1 + 0.12/1)^(1*15)
Simplifying the equation:
A = $5000(1 + 0.12)^15
Now, let's calculate the final amount:
A = $5000(1.12)^15
Using a calculator:
A ≈ $5000(4.079)
A ≈ $20,395.58
So, after 15 years, you should have approximately $20,395.58 in your savings account.