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.**

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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?
$

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How much total intrest will you earn?

You deposit $150 each month into an account earning 5% interest
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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
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How much will you have in the account in 20 years?
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monthly.
How much will you have in the account in 25 years?
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1. If you deposit $6,500 into an account paying 8% annual
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2. If you deposit $5,000 into an account paying 6% annual
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