How much would 30 be worth after 4 years if you received 184

How much would $30 be worth after 4 years if you received 18.4% interest per year, compounded monthly?

Let the worth of $30 after 4 years is denoted by A

So A = P (1+r/n)^nt

where P = the amount deposit today i.e., $30.

r = rate of interest per year i.e., 18.4% =0.184

n = no. of times interest is compounded i.e., 12 as compounded monthly.

t = no. of years i.e., 4 years.

Put values in the formula, we get

A = $30* (1+0.184/12)^12*4

A = $30*(1 + 0.01533)⁴⁸

A = $30*(1.01533)⁴⁸

A= $30 *( 2.075)

A= $62.25

So the worth of $30 after 4 years if interest rate is 18.4% per year compounded monthly is $62.25