you put 25,000 in the bank. then you pay 300 a month at an interest rate of 5% for 10 years. how much will you have in yyour account 10 years later? how much youve in earned in intrest alone? how much total from you actual deposits?
you put 25,000 in the bank. then you pay 300 a month at an interest rate of 5% for 10 years. how much will you have in yyour account 10 years later? how much youve in earned in intrest alone? how much total from you actual deposits?
Will assume that 5% is compounded monthly, then after 10 year you will have accumulated=$87,759.92-Principal plus interest.
$87,759.92 - $25,000 - [$300 x 120] =$26,759.92 Interest earned over 10 years.
Total deposits=$25,000 + [$300 x 120] =$61,000 over 10 years.
The formula you use to calculate is this:
-P*[(1-(1+R/100)^-N)/(R/100)]+FV*(1+(R/100))^-N-PV=0, solve for FV.
Where R=Interest rate per period, N=number of periods, P=periodic payment, PV=Present value, FV=Future value.
