Exactly 176 years ago, you deposited $2444.87 in your savings account earning exactly 0.5 % interest, compounded monthly. What is the current value of the account? .

Question

How would you calculate compound interest here ?

Answer 1

A= 24487(1+.05/12)^(12)(176)

= 24487(1.0041666...)^2112

=a boatload of money, the "miracle of compound interest"

use a calculator

=$456,441,667.50

=about 1/2 billion dollars

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

where P = starting amount

A = ending Amount

r = annual interest rate

n = number of compounding periods per year

t = number of years

Odds are you meant 5% interest, not .5%, although at recent low interest rates .5% is possible

so recalculate as .5%= .005

A=24487(1+.005/12)^12(176)

= a lot less, but still a relatively large amount

= 24487(1.0004666....)^2112

=$65,595.85

less than $3,000 grows to over $65,000

over 26 times the original amount

banks though, either way, would likely find ways to charge fees taking most or all the interest