Question

Damarius is making some big life decisions! He decides it's time to start saving for his future and deposits $300 each month at 4.1% annual interest, compounded monthly, for 30 years. At the end of 30 years, he has an account balance of $211,966.64. How much of this did Damarius contribute and how much of this is interest?

Answer 1

$108,000

$103,966.64

Explanation:

Damarius contributes $300 each month, for 30 years. Therefore, to find the amount he contributed, we multiply those pieces together (12 months in each year).

300⋅12⋅30=$108,000

Therefore, over the 30 years, Damarius contributed $108,000.

If there was $211,966.64 in his account, and he contributed $108,000, then the rest is interest.

$211,966.64−$108,000=$103,966.64

There was $103,966.64 in interest earned on Damarius' account.