Question

3. Calculate the compounded interest payment for each year for a total of 5 years. You will fill in the row for Interest Payment Distributed for each year, the Ending Balance and the Total Interest You should have a separate amount for each month. I would recommend doing this in Excel. Make sure you show your work.

Deposit- $3,000

Annual Interest Rate: 7%

Maturity	Principal Balance	Interest Payment- Distributed
1 year	$3,000
2 year	$3,000
3 year
4 year
5 year
Ending Balance	?
Total Interest		?

Answer 1

Maturity	Principal Balance	Interest Payment Distributed
	(a)	(a) X 7%
1 year	$   3,000	$       210
2 year	$   3,210	$       225
3 year	$   3,435	$       240
4 year	$   3,675	$       257
5 year	$   3,932	$       275
Ending Balance	$   4,208
Total Interest		$   1,208