A credit union pays 8% per annum compound interest on all fixed deposits . A customer deposited $24000 in an account . Calculate the total amount of money in the account at the end of two years
24000(1+.08)^2 = 27993.60
Total on account after 2 years is $27993.60
Ah, money matters! Well, it seems our customer has deposited $24,000 in the credit union account. Now, let's calculate the total amount at the end of two years with that 8% per annum compound interest.
To calculate compound interest, we need to use this formula:
A = P(1 + r/n)^(nt)
Where:
A = Total amount after interest
P = Principal amount (initial deposit) = $24,000
r = Annual interest rate (in decimal form) = 8% or 0.08
n = Number of times interest is compounded per year (since it's not specified, let's assume it's compounded annually) = 1
t = Number of years = 2
Now, let's plug the numbers into the formula and crunch some math!
A = 24000(1 + 0.08/1)^(1*2)
A = 24000(1 + 0.08)^2
Alrighty, time for the clown calculator! *hums and taps buttons*
Drumroll, please!
After two years, the total amount in the account (drumroll intensifies) is approximately $27,878.40. Ta-da!
But remember, this is assuming the interest is compounded annually. If it's compounded more frequently, feel free to adjust the formula accordingly.
To calculate the total amount of money in the account at the end of two years, we can use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
A = the total amount in the account at the end of the time period
P = the principal amount (initial deposit)
r = annual interest rate (as a decimal)
n = number of times interest is compounded per year
t = time period in years
In this case:
P = $24000
r = 8% = 0.08
n = 1 (as interest is compounded annually)
t = 2
Plugging in these values into the formula:
A = 24000(1 + 0.08/1)^(1*2)
Simplifying this:
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 is approximately $27,993.60.
To calculate the total amount of money in the account at the end of two years, we need to use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
A = The total amount of money in the account at the end of the time period
P = The principal amount (initial deposit)
r = The annual interest rate (in decimal form)
n = The number of times the interest is compounded per year
t = The number of years
In this case:
P = $24000
r = 8% per annum = 0.08 (in decimal form)
n = The interest is compounded annually, so n = 1
t = 2 years
Plugging 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 = $27996.60
Therefore, the total amount of money in the account at the end of two years would be approximately $27996.60.