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