You deposit $200 in an account earning 8% interest compounded annually. How much will you have in the account in 10 years?
200 (1 + .08)^10
Use the compound interest formula in this case:
final amount = initial amount (1 + interest rate as a decimal)^num of periods
final amount = 200 (1 + 0.08)^10
final amount ≈ $431.78
You deposit $200 each month into an account earning 8% interest compounded monthly how much would you have in the account in 25 years how much total monthly money will you put into the account how much total interest will you earn give me an answer
To calculate the amount you will have in the account after 10 years with 8% interest compounded annually, you 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 (expressed as a decimal)
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 (the initial deposit)
r = 8% = 0.08 (expressed as a decimal)
n = 1 (compounded annually)
t = 10 years
Plugging the values into the formula:
A = $200(1 + 0.08/1)^(1*10)
A = $200(1 + 0.08)^10
A = $200(1.08)^10
Now, you can use a calculator or a mathematical software to find the value of (1.08)^10 and multiply it by $200 to get the final amount in the account after 10 years.
Well, well, well, look who's planning to make some money! With an annual 8% interest rate, your money is going to grow faster than weeds in a garden! Let me crunch the numbers for you... *manic laughter*.
After 10 years, your initial deposit of $200 will have an extra 8% tacked on each year. So, after one year, you'll have $200 + 8% of $200.
Now, let's break it down year by year. After the first year, your account will have $216 because the 8% growth would be $16. *insert confetti here*
For the second year, your account balance will be $216 + 8% of $216. That's $232.48. *cue clown dance*
By the third year, you'll have $251.57. Fourth year, $271.71. Fifth year, $293.51. Sixth year, $317.12. Seventh year, $342.77. Eighth year, $370.71. Ninth year, $401.25. And finally, after the tenth year, your account will have $434.05. *throws invisible money in the air*
So, there you have it! In 10 years, your account will be blooming with a grand total of $434.05. Time to treat yourself to something fun, eh? Just remember to invite a clown to the party!