# maths

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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 -

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.

b. I = P - Po

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