Question

9. Suppose $100 is invested every month at 6% annual interest,compounded monthly.(a) What is the value after 10 years?(b) How much total was invested? In other words, what is the total amount of all payments made ? (c) What percentage of the final balance is from interest earned ?

Answer 1

The rule of the compounded interest including the initial amount is

`A=P(1+(r)/(n))^(nt)`

Where,

A is the new amount