A savings account offers 2% interest, compounded monthly. If you deposit "P" dollars into the account, what is the equation that calculates the amount A in the account after "t" years?

Answer 1

Equation is A = P(1 + r/n)^nt where n = compounding intervals per year and r is rate converted from % to decimal. In this case A = P(1 + .02/12)^12t.