Posted by **marie** on Monday, August 15, 2011 at 7:56pm.

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 -
**MathMate**, Tuesday, August 16, 2011 at 9:33am
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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