Given:
Principal (P)=$200
Rate of interest (r) =4%
time (t)=30 years
Number of times compounded per year(n) = 12
Required- the amount.
Explanation:
First, we change the rate of interest in decimal by removing the "%" sign and dividing by 100 as:
[tex]\begin{gathered} r=4\% \\ \\ =\frac{4}{100} \\ \\ =0.04 \end{gathered}[/tex]
Now, the formula for finding the amount is:
[tex]A=P(1+\frac{r}{n})^{nt}[/tex]
Put the given values in the formula, we get:
[tex]A=200(1+\frac{0.04}{12})^{12\times30}[/tex]
Solving further, we get:
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