Question

You deposit $200 each month into an account earning 3% interest compounded monthly.

Answer 1

The total amount of money accrued ( principal and interest ) in 35 years is $570.78.

What is the total amount accrued?

The formula for compound interest is expressed as;

A = P( 1 + r/t )^(n×t)

Given the data in the question;

• Principal P = $200
• Rate r = 3% = 3/100 = 0.03
• Compounded monthly n = 12
• Time t = 35
• Amount accrued in 35 years A = ?

Plug the given values into the equation above.

A = P( 1 + r/n )^(n×t)

A = 200( 1 + 0.03/12 )^(12×35)

A = 200( 1 + 0.0025 )^(420)

A = 200( 1.0025 )^(420)

A = 200( 2.85390914 )

A = $570.78

Therefore, the total amount of money accrued ( principal and interest ) in 35 years is $570.78.

Learn more about compound interest here: brainly.com/question/27128740

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