Question

You deposit $200 each month into an account earning 2% interest compounded monthly.a) How much will you have in the account in 15 years?$b) How much total money will you put into the account?$c) How much total interest will you earn?I am so stuck... Can someone explain how to do this?

Answer 1

Explanation:

First you sort out the question:

a.)2% of 200$=4$

Break down 15 years into months=180 months

Then you substitute the annual 2%interest of 200$, after that multiply 200($) by 180(months)=36,000

Now we bring in the 2%=(4$) that was substituted and we also multiply by 180; 4*180=720 then add the 720 to the 36,000 we got earlier making it 36,720.

So in 15years, there will be 36,720$ in the account.

b.) You will put 36,000$ into the account within the 15 years period.

c.) Your total interest will be 720$