a credit union pays 8 percent per annum compound interest on all fixed deposits. a consumer deposited $24000 in an account. calculate the total amount of money in the account at the end of two years.
To calculate the total amount of money in the account at the end of two years with compound interest, you can use the formula:
A = P(1 + r/n)^(nt)
Where:
A = the amount of money at the end of the time period
P = the principal amount (initial deposit)
r = annual interest rate (in decimal form)
n = number of times the interest is compounded per year
t = number of years
In this case:
P = $24,000
r = 8% per annum = 8/100 = 0.08
n = 1 (as it is compounded annually)
t = 2 years
Plugging in these values into the formula:
A = 24000(1 + 0.08/1)^(1*2)
A = 24000(1 + 0.08)^2
A = 24000(1.08)^2
A ≈ 24000 * 1.1664
A ≈ $27,993.60
Therefore, the total amount of money in the account at the end of two years would be approximately $27,993.60.