Question

You deposit $100 each month into an account earning 6% interest compounded monthly.

a) How much will you have in the account in 30 years?

$


b) How much total money will you put into the account?

$


c) How much total interest will you earn?

Answer 1

a) You will have $38,160 in 30 years

b) You will put $36,000 in total

c) You will earn $2,160 total interest

Explanation:

a) 100 + 6% × 360= 38,160

b) 100×360= 36,000

c) 38,160-36,000= 2,160