FORMULA FOR COMPOUND INT. = A = P ( 1 + [tex]\frac{R}{100}[/tex])[tex]^{n}[/tex]
= P = 2000, R = [tex]\frac{5}{12}[/tex] ( as it is compounded monthly ), N= 8 × 12 = 96
= A = 2000 [tex]([/tex] 1 + [tex]\frac{5}{1200}[/tex] [tex])^{96\\}[/tex] = [tex]\frac{2000}{1}[/tex] × ([tex]\frac{1205}{1200}[/tex]) [tex]^{96}[/tex]
= 2981.17
