You deposit 200 each month into an account earning 6% interest compounded monthly how much will you have In The account in 20 years
To find out how much you will have in the account in 20 years, 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 investment amount (the initial deposit)
r = the annual interest rate (in decimal form)
n = the number of times that interest is compounded per year
t = the number of years the money is invested for
In this case:
P = $200 (monthly deposit)
r = 6% = 0.06 (annual interest rate in decimal form)
n = 12 (compounded monthly)
t = 20 (number of years)
First, we need to calculate the total amount of deposits over 20 years. Since you deposit $200 each month, the total deposits would be:
Total Deposits = $200/month x 12 months/year x 20 years
Total Deposits = $200 x 12 x 20
Total Deposits = $48,000
Now, let's calculate the future value of the investments:
A = P(1 + r/n)^(nt)
A = $48,000(1 + 0.06/12)^(12*20)
A = $48,000(1 + 0.005)^(240)
A = $48,000(1.005)^(240)
A ≈ $132,828.61
So, after 20 years, you will have approximately $132,828.61 in the account.