Answer:
The amount after another 25 years is $546.79.
Explanation:
Principle amount = $50
Interest rate = 8% compounded monthly.
Time = 5+25 = 30 years
The formula for amount is
[tex]A=P(1+\frac{r}{n})^{nt}[/tex]
where,
A = total amount
P = principal or amount of money deposited,
r = annual interest rate
n = number of times compounded per year
t = time in years
Substitute P=50, r=0.08, n=12 and t=30 in the above formula.
[tex]A=50(1+\frac{0.08}{12})^{12(30)}[/tex]
[tex]A=50(1+\frac{0.08}{12})^{360}[/tex]
[tex]A=546.786482888[/tex]
[tex]A\approx 546.79[/tex]
Therefore the amount after another 25 years is $546.79.
