where:
$FV$ = future value
$P$ = monthly deposit amount = $100
$r$ = monthly interest rate = $\frac{9}{100} \div 12 = \frac{9}{1200}$
$n$ = total number of months = 50
Using this formula, the future value of the monthly deposits is:
Calculating this expression gives us:
Therefore, after seven years, there will be approximately $$6317.31$ in the account.
To calculate the compound interest, we need to subtract the total amount of deposits made from the future value. The total amount of deposits made is:
Therefore, the compound interest is:
The amount of compound interest in the account is approximately $1317.31.