You deposit $300 each month into an account earning 5% interest compounded monthly. a) How much will you have in the account in 20 years? $ b) How much total money will you put into the account? $ c) How much total interest will you earn? $
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In this case, P = $300, r = 0.05/12 = 0.0041667 (since the interest is compounded monthly), n = 12, and t = 20. FV = 300 * [(1 + 0.0041667)^(12*20) - 1] / 0.0041667 FV ≈ $122,964.63 So, in 20 years, you will have approximately $122,964.63 in the account. b) Show more…
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