Question

You deposit $300 each month into an account earning 2% annual interest compounded monthly

A. How much money will you have in your account in 35 years?

B. How much total money will you put into the account ?

C. How much total interest will you earn?

Answer #1

a) The total value of the account in 35 years is computed here as:

= Future value of each of the $300 monthly installments at the end of the 35 year period

**therefore $182,568.11 is the required money we will have
in the account in 35 years.**

b) Total money that would be put in account is computed here as:

= 300*Total months of installments

= 300*12*35

= 126000

**Therefore $126,000 is the total money put in the
account.**

c) The total interets earned here is computed as:

= Total Amount value at end of period - Total installments put in the account

= 182,568.11 - 126000

= 56568.11

**therefore $56,568.11 is the required total interest
earned.**

You deposit $300 each month into an account earning 5% 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?
$

1) You deposit $500 each month into an account earning 3%
interest compounded monthly.
a) How much will you have in the account in 25 years?
b) How much total money will you put into the account?
c) How much total interest will you earn?
2) Suppose you invest $190 a month for 6 years into an account
earning 7% compounded monthly. After 6 years, you leave the money,
without making additional deposits, in the account for another 21
years....

6. You deposit $400 each month into an account earning 5%
interest compounded monthly.
a) How much will you have in the account in 35 years?
b) How much total money will you put into the account?
c) How much total interest will you earn?
7. Suppose you want to have $500,000 for retirement in 25 years.
Your account earns 7% interest.
a) How much would you need to deposit in the account each
month?
b) How much interest will...

You deposit $500 each month into an account earning 4%
interest compounded monthly. How much will you have in the account
in 30 years? How much total money will you put into the account?
How much total intrest will you earn?

You deposit $150 each month into an account earning 5% interest
compounding monthly.
a) How much will you have in the account in 35 years?
b) How much total money will you put in the account?
c) How much total interest will you earn?

You deposit $2000 in an account earning 3% interest compounded
monthly
How much will you have in the account in 20 years?
How much interest will you earn?
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monthly.
How much will you have in the account in 25 years?
How much interest will you earn?

FINANCE
5.
5A.
You deposit $5000 in an account earning 8% interest compounded
monthly. How much will you have in the account in 15
years?
5B.
You can afford a $350 per month car payment. You've found a 3
year loan at 2% interest. How big of a loan can you
afford?
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You have $300,000 saved for retirement. Your account earns 5%
interest. How much will you be able to pull out each month, if you
want to be...

1. If you deposit $6,500 into an account paying 8% annual
interest compounded monthly, how much money will be in the account
after 7 years?
2. If you deposit $5,000 into an account paying 6% annual
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account?
3. At 3% annual interest compounded monthly, how long will it
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You deposit $3000 each year into an account earning 6% interest
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1/ You deposit $3000 at the beginning of each year into an
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2/Suppose you want to have $400,000 for retirement. Your account
earns 7% interest compounded monthly. If you deposit $200 at the
end of each month, how long will it take you to reach your goal?
Round to the nearest year.

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