Homework Help: maths

Posted by mary on Wednesday, July 18, 2012 at 1:23am.

You deposit $10,000 in an account earning 4% interest compounded monthly.
a. How much will you have in the account in 25 years?
b. How much interest will you earn?

maths - Henry, Thursday, July 19, 2012 at 4:24pm
a. P = Po(1+r)^n.

Po = $10,000.

r = (4%/12) / 100% = 0.0033333 = Monthly
% rate expressed as a decimal.

n = 12Comp./yr * 25yrs = 300 Compounding
periods.

Plug the above values into the given
Eq.

Answer: P = $27,137.65.

b. I = P - Po

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