Question

Damarius starts saving for his future and deposits $300 each month at 4.1% annual interest, compounded monthly, for 30 years. At the end of 30 years, he has an account balance of $211,966.64. How much of this did Damarius contribute and how much of this is interest?

Answer 1

ANSWER

Therefore, the amount contributed by Damarius is $ 108,000 and the Interest earned is $103,966.64

EXPLANATION

Given;

Monthly deposit is;

$300$

Since, Damarius invested $ 300 each month for 30 years.

The Total principal investment for 30 years would be;

$\begin{gathered} 300\times30\times12 \\ =108000 \end{gathered}$

Hence, Damarius account balance after 30 years is the principal investment plus the interest.

Hence, Given that he has an account balance of $211,966.64.

Damarius interest equals;

$\begin{gathered} 211966.64-108000 \\ =103966.64 \end{gathered}$

Therefore, the amount contributed by Damarius = $ 108,000 and the Interest earned = $ 103,966.64