Matt is saving to buy a new motorcycle. if he deposits $70 at the end of each month in an account that pays an annual interest rate of 2.5%, how much will he have in 30 months? assume that the compounding is being done monthly.

Answer

$20,448.6567

Explanation

The rate per month = 2.5%/12

                                  = 0.208333%

The formula  for compound interest is;

Amount = P(1+r)ⁿ   Where p ⇒ deposit+

                                          r ⇒ rate

                                           n ⇒ period

∴ Amount saved after 30 months = 70(1+0.20833)³⁰

                                                         = 70 × 292.1236672

                                                       =  $20,448.6567

$8

step-by-step explanation:

it is pretty much backwards.

you take the 4x2 multiply that, and that is = $8