You have an account that currently has $

Question

You have an account that currently has $3,000 in it; you’re adding $25 per month and you’re earning 4.3% interest annually. How much money will you have in the account in 12 years?

Answer 1

This question can easily be answered by using a spreadsheet program, since the deposits are regular ($25/month), and the interest rate is an annual rate, the calculations are straight forward. Here is the table.

start          add    annual      interest       new

amount               total         per year      total

3000.00    300    3300.00   141.90       3441.90
3441.90    300    3741.90   160.90       3902.80
3902.80    300    4202.80   180.72       4383.52
4383.52    300    4683.52   201.39       4884.91
4884.91    300    5184.91   222.95       5407.86
5407.86    300    5707.86   245.43       5953.30
5953.30    300    6253.30   268.89       6522.19
6522.19    300    6822.19   318.86       7734.41
7734.41    300    8034.41   345.47       8379.89
8379.89    300    8679.89   373.23       9053.13
9053.13    300    9353.13   402.18       9755.31