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OlgaM077 [116]
3 years ago
6

Joanna has been saving for retirement for 40 years. She made monthly deposits of $275 and earned 5.6% annual interest, compounde

d monthly. According to her account documents, after these 40 years, she has a balance of $491,730.35 in her account. How much of this did Joanna contribute and how much of this is interest?
Mathematics
1 answer:
ryzh [129]3 years ago
6 0

Joanna deposited $132000 and her interest amount is $359730.35

<u>Step-by-step explanation:</u>

Monthly deposit = $275

Interest = 5.6%

Time = 40 years

After 40 years her account balance = $491730.35

If she deposit $275 monthly then after 40 years she will have deposited ,

= 275 x 12 x 40

= $132000

The remaining is her interest amount.

Interest amount = 491730.35 - 132000

= $359730.35

Joanna deposited $132000 and her interest amount is $359730.35

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