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math

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find the interest rounded to the nearest dollar
periodic deposit
$60 at the end of each month

Rate
5% compounded monthly

Time
30 years

  • math - ,

    I assume 5% is annual interest compounded monthly.

    Use the compound interest formula:
    Future value
    =P((1+r)^n-1)/r
    where
    P=monthly payment, =$60
    r=interest rate per period = .05/12
    n=number of periods = 30*12
    then
    Future value
    =60*((1+0.05/12)^360-1)/(0.05/12)
    =49935.52

    From the future value, subtract the total of monthly payments over 360 months at $60 per month to get the interest.

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