You deposit $10,000 in an account earning 4% interest compounded monthly. a. How much will you have in the account in 25 years? b. How much

Question

You deposit $10,000 in an account earning 4% interest compounded monthly. a. How much will you have in the account in 25 years? b. How much interest will you earn?

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Nem 1 year 2021-08-21T22:35:55+00:00 1 Answers 69 views 0

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    2021-08-21T22:37:31+00:00

    Answer:

    In 25 years I will have $ 27,137.65. Therefore, I will earn $17,137.65 interest.

    Step-by-step explanation:

    Given that I deposit $ 10,000 in an account earning 4% interest compounded monthly, to determine how much will you have in the account in 25 years and how much interest will I earn, the following calculation must be performed:

    10,000 x (1 + 0.04 / 12) ^ 25×12 = X

    10,000 x (1 + 0.00333) ^ 300 = X

    10,000 x 2.7137 = X

    27,137.65 = X

    Therefore, in 25 years I will have $ 27,137.65. Therefore, I will earn $17,137.65 interest.

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