Mr. Robert deposits 30000 in national bank for 3 years which earn him an interest of 2.8% per annum and compounded monthly.what is the amount he gets after 1 year, 2 year, and 3 years
Answers
Answer:
How much money would you need to deposit today at 9% annual interest compounded monthly to have $12000 in the account after 6 years? ⎝ ⎠ Plug in the given information. P = 7007.08 Round your final answer to two decimals places. You would need to deposit $7007.08 to have $12000 in 6 years.
Given,
Mr Robert deposits 30000 for 3 years which earn him an interest of 2.8% per annum and compounded monthly.
To find,
the compounded amount.
Solution,
There is a formula
A = P(1 + r/n) (nt)
where P is the principal balance, r is the interest rate,
n is the number of times interest is compounded per period and
t is the number of periods
So when we apply this formula every month
We need to convert years into months
For e.g 2 years= 24 months
After that, we will apply this formula in which we take
P= 30000
R= 2.8/12= 0.23333
n = 12
t= 12 months in 1st situation,24 in 2nd 36 in 3rd
After applying the formula
We get
In 1st case
A= 30,580
In 2nd case
A= 31,725
In 3rd case
A= 32625
Hence, using the above formula we can find the Amount we will get after a specific period.