Problema Solution
Geraldo deposits $200 each month into an account paying annual interest of 6.5% compounded monthly. How much will his account have in it at the end of 11 years?
Answer provided by our tutors
Formula for montly compounded interest (A is the Amount, r is the rate):
A = A * (1 + r/12)
Over the course of 11 years, beginning with $0 and depositing $200 each month, one will accumulate:
A = $200 + Aym*(1+Aym*(.065/12.))
or $38409
for y = 1, 11 and m = 1, 12