25 years = 25*12 = 300 monthly periods
interest rate monthly r = 0.05/12 = .0041666666...
so every month multiply by 1.004166666..... and add 300
formula:
v = 300 [ 1.0041666^300 - 1 ] / .004166666
= 300 [ 3.48129 -1 ] / 0.004166666
= 300 [ 595.5 ]
= 178,652.94
b.
300 * 300 = 90,000
c. subtract b from a
You deposit $300 each month into an account earning 5% 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?
1 answer
1 answer