If you invest 250.00 for 10 years at 6%,coumpounded monthly, what would the interest be. The amount I calculated for the investment is 40,969.83, but I am not sure of the interest.
Pt = Po(r + 1)^n.
r = 6% / 12 = 0.5%/mo = o.005,
n = 12 comp/yr * 10 yr = 120 comp.
Pt = 250(1.005)^120,
Pt = 250 * 1.8194 = 454.85.
Int. = 454.85 - 250 = 204.85.