Question

Suppose you deposited $250 per month into a savings plan for ten years, and at the end of the period your balance was $32,500.

How much did you earn in interest?

Answer 1

well, we know you have been depositing 250 bucks every month for 10 years, so that'd be hmmm (250)(12)(10) = 30000 bucks, wait a second!!! lucky dog! you've got 32,500, where the heck the extra 2500 come from? well, 2500 in earned interest.