document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1190655>Question 1190655</A>: <I><SPAN STYLE=\"word-break: break-all;\"> You deposit $200 each month into an account earning 7% interest compounded monthly.\r<BR>\n" );
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document.write( "a) How much will you have in the account in 30 years? (Round down to the cents place.)\r<BR>\n" );
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document.write( "b) How much total money will you put into the account? (Give the exact value.)\r<BR>\n" );
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document.write( "c) How much total interest will you earn?<BR>\n" );
document.write( "I am stuck on this; I've tried the formulas for it<BR>\n" );
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document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #849239 by </B><A HREF=/tutors/aboutme.mpl?userid=CPhill><B>CPhill(1959)</B></A><img src=\"/images/stars/stars-12.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=CPhill><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=CPhill><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=849239\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> Here's how to break down this compound interest problem:\r<BR>\n" );
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document.write( "**a) Future Value:**\r<BR>\n" );
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document.write( "We'll use the future value of an ordinary annuity formula:\r<BR>\n" );
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document.write( "FV = P * [((1 + r)^n - 1) / r]\r<BR>\n" );
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document.write( "Where:\r<BR>\n" );
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document.write( "* FV = Future Value (what we want to find)<BR>\n" );
document.write( "* P = Periodic payment ($200)<BR>\n" );
document.write( "* r = Interest rate per period (7% annual / 12 months = 0.07/12 = 0.0058333...)<BR>\n" );
document.write( "* n = Number of periods (30 years * 12 months = 360)\r<BR>\n" );
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document.write( "FV = 200 * [((1 + 0.0058333)^360 - 1) / 0.0058333]<BR>\n" );
document.write( "FV = 200 * [ (7.612255 -1)/0.0058333]<BR>\n" );
document.write( "FV = 200 * 1133.67<BR>\n" );
document.write( "FV = 226734.14\r<BR>\n" );
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document.write( "Rounded down to the cents place, you'll have approximately **$226,734.14** in the account after 30 years.\r<BR>\n" );
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document.write( "**b) Total Money Deposited:**\r<BR>\n" );
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document.write( "This is a simple multiplication:\r<BR>\n" );
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document.write( "Total Deposited = Monthly Deposit * Number of Months<BR>\n" );
document.write( "Total Deposited = $200 * 360<BR>\n" );
document.write( "Total Deposited = **$72,000**\r<BR>\n" );
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document.write( "**c) Total Interest Earned:**\r<BR>\n" );
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document.write( "Total Interest = Future Value - Total Deposited<BR>\n" );
document.write( "Total Interest = $226,734.14 - $72,000<BR>\n" );
document.write( "Total Interest = **$154,734.14**<BR>\n" );
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