Question

You make monthly $200 deposits into an account with a 3% annual interest rate what is the approximate balance of the account after 20 years.

Answer 1

Assuming that the $200 monthly deposits are made at the end of each month and no other deposits or withdrawals are made, the approximate balance of the account after 20 years would be around $77,371.19.

Answer 2

The approximate balance of the account after 20 years would be $86,400. This is because the monthly deposits will compound over time, meaning the interest earned on the account each month will be added to the balance and will also earn interest. Over the course of 20 years, these small monthly deposits will add up significantly due to compounding interest.