suppose you placed 1000 into a savings account which offers

suppose you placed $1000 into a savings account which offers annual interest of 4.8% compounded monthly. If left untouched for 30 years, how much would you have saved up?

Solution

P = $1000

r = 4.8% = 0.048

n = 12

t = 30 years

Now

A = P (1 + r/n) ^(nt) = 1000*(1 + 0.048/12)^(12*30) = 1000*(1.004)³⁶⁰ = $4208.59

Total saving = A - P = $4208.59 - $1000 = $3208.59