1. ## Need Help

A round table can be made square by dropping the four leavAt the end of everymonth Elle Deposits $500 into a savings account,with an anual interest rate of 6% compounded monthly.How much interrest will be earned at the end of 4 years? I am very confused about what to do 2. Originally Posted by Rimas A round table can be made square by dropping the four leavAt the end of everymonth Elle Deposits$500 into a savings account,with an anual interest rate of 6% compounded monthly.How much interrest will be earned at the end of 4 years?

I am very confused about what to do
I'm very confused about the question! What does a savings account have to do with a round table??

-Dan

3. Originally Posted by topsquark
I'm very confused about the question! What does a savings account have to do with a round table??

-Dan
Copy/Paste problem?

RonL

4. Originally Posted by Rimas
A round table can be made square by dropping the four leavAt the end of everymonth Elle Deposits $500 into a savings account,with an anual interest rate of 6% compounded monthly.How much interrest will be earned at the end of 4 years? I am very confused about what to do I assume you were asking the question that's highlighted, and then decided to ask the composite interest problem? 5. Sry about that a typing error this is the real question :At the end of everymonth Elle Deposits$500 into a savings account,with an anual interest rate of 6% compounded monthly.How much interrest will be earned at the end of 4 years?

6. Hello, Rimas!

At the end of every month, Elle deposits $500 into a savings account with an annual interest rate of 6% compounded monthly. How much interest will be earned at the end of 4 years? This is an annuity problem which has this formula: . . . . . . . . .(1 + i)^n - 1 . . A . = . D ---------------- . . . . . . . . . . . . . i where D is the periodic deposit, i is the periodic interest rate, . . n is the number of periods, and A is the final balance. This problem has: D =$500, i = 6%/12 = 0.005, n = 47 *

. . . . . . . . . . . . . . . 1.005^47 - 1
We have: . A .= .500 ---------------- . .$26,416.83 . . . . . . . . . . . . . . . . . .0.005 The final balance is: .$26,416.83 + 500 .= .$26,916.83 ** Since she deposited 48 x$500 .= .$24,000 . . the interest is: .$26,916.83 - 24,000 .= .\$2,916.83

*
Since the deposits are made at the end of each period,
. . there are 47 compounding periods.

**
The last deposit is made at the end of the 48th month.
It draws no interest but is still part of the final balance.