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moongazer

  • 3 years ago

I invested $4000 in a bank who offers 5 percent monthly interest (the interest covers the total amount of money currently present in the bank including the previously added interest). How much money would I have after 40 months

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  1. hartnn
    • 3 years ago
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    simply use the formula for monthly compound(or simple?) interest. \[A = P (1+r/12)^{12n} \] P = principle amount = 4000 r= rate = 5% = 0.05 n= no. of months = 40

  2. moongazer
    • 3 years ago
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    Thanks. What if I am also adding $1000 per month?

  3. hartnn
    • 3 years ago
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    hmm...tricky, i am not sure, but it'll be (P + 1000n) instead of just P .

  4. moongazer
    • 3 years ago
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    Thanks. I'll try that :)

  5. moongazer
    • 3 years ago
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    I'll just eat :)

  6. hartnn
    • 3 years ago
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    ok, welcome ^_^

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