Word problem

Question

You deposit $400 each month into an account earning 7% interest compounded monthly.

a) How much will you have in the account in 20 years?

$Incorrect

b) How much total money will you put into the account?

$Correct

c) How much total interest will you earn?

$Incorrect

Answer 1

Either use the Ordinary Annuity formula, or do the calculations laboriously by hand. Beware of the latter because 20 years is 240 months!