compounded monthly. If she opened her account when she was 20 years old, how much will she

have by the time she’s 55? How much of that amount was interest earned?

How do I do this problem?

- Thread starter quach123
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compounded monthly. If she opened her account when she was 20 years old, how much will she

have by the time she’s 55? How much of that amount was interest earned?

How do I do this problem?

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- Dec 30, 2014

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- 7,036

What is the formula for compound interest?

How much is p, the principle?

How much is n, the number of times you get interest per year?

How much is t, the number of years you have the account for?

How much is r as a decimal, where r is the annual interest rate?

Please post back with the answers to my question and any work you have done.

P=$3,600

n=12 times/yr

t=35 years

r=0.075

I plugged these numbers into the equation and my teacher responded that it was wrong. I got $49,292.15. He said, "This is ok if she only made one deposit and then let compound interest do the work. But, she made a deposit every year for twenty years. The solution to that involves a little more work." I don't know where to go from here.

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- Jan 27, 2012

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Rachel put $3600 in an account when she was 20 and let it accumulate 7.5% interest for 55- 20= 35 year. How much will it be worth after 35 years? (Is that simple interest or compounded annually or compounded quarterly?)

She puts $3600 in the account at 7.5% interest for 34 years. How much will that be worth?

She put $3600 in the account at 7.5% interest for 33 years.

Etc.