Question

George decides to put away $200 a month for 20 years.

If he chooses to put it into an annuity paying 6% interest compounded monthly how much would he end up with? - how much interest does he earn?

Answer 1

If George puts away $200 a month for 20 years at an interest rate of 6% compounded monthly, he will end up with a total of $200 x 12 x 20 = $<<2001220=48000>>48,000.

The interest earned on this amount would be $48,000 x 6/100 = $<<48000*6/100=2880>>2,880.

Explanation: