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You deposit $500 each month into an account earning 6% interest compounded monthly.a) How much will you have in the account in 20 years? __________________b) How much total interest will you earn? ____________________

Respuesta :

As given by the question

(a)

There are given that the initial payment is $500.

Now,

From the formula, the equation will be:

[tex]A=500(1+\frac{0.06}{12})^{12\times20}[/tex]

Then,

[tex]\begin{gathered} A=500(1+\frac{0.06}{12})^{12\times20} \\ A=500(1+\frac{0.06}{12})^{240} \\ A=500(3.310) \\ A=1655 \end{gathered}[/tex]

Hence, $1655 will you have in the account in 20 years.

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