I invested $4000 in a bank who offers 5 percent monthly interest (the interest covers the total amount of money currently present in the bank including the previously added interest). How much money would I have after 40 months

Question

hartnn · Answer

simply use the formula for monthly compound(or simple?) interest.
$$A = P (1+r/12)^{12n} $$
P = principle amount = 4000
r= rate = 5% = 0.05 
n= no. of months = 40

moongazer · Answer

Thanks. What if I am also adding $1000 per month?

hartnn · Answer

hmm...tricky, i am not sure, but it'll be 
(P + 1000n) instead of just P .

moongazer · Answer

Thanks. I'll try that :)

moongazer · Answer

I'll just eat :)

hartnn · Answer

ok, welcome ^_^