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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