When Patricia Medina has deposits $1,963.80 per month in a savings fund with an interest rate of 9% per year compounded monthly, the account increase in interest on deposit number 24 by $4,297.72.
How the total interest is computed:
We can use an online finance calculator to compute the total interest as well as the future value on deposit number 24 when interest compounds monthly.
The total interest shows how much the fund increases in interest for the stated period.
N (# of periods) = 24
I/Y (Interest per year) = 9%
PV (Present Value) = $0
PMT (Monthly Deposits) = $1,963.80
Results:
FV (Future Value) = $51,428.92
Sum of all periodic payments = $47,131.20
Total Interest = $4,297.72
Thus, Patricia's saving account will increase by $4,297.72 in interest after deposit number 24.
Complete Question:
Patricia Medina has a savings fund in which she deposits $1,963.80 per month and has an interest rate of 9% per year compounded monthly. How much does the account increase in interest on deposit number 24?