Compund interest problem!please help .
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Compund interest problem!please help .

[From: ] [author: ] [Date: 12-04-13] [Hit: ]
..200[ (1+0.09/12)^48 - 1 ] / (0.09/12) = 11504.14 at the end of 4 yrs.......
katie puts $200 in a bank account at the end of each month . if she earns 9% per annum, compounded monthly determine how much she will have at the end of 4 years? how much interest has she earned?

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samantha -

Katie puts $200 in a bank account at the end of EACH month ... so this is an ANNUITY problem and you use the following annuity formula:

200[ (1+0.09/12)^48 - 1 ] / (0.09/12) = 11504.14 at the end of 4 yrs.

Interest = 11504.14 - (200)(48) = 1904.14

Hope that helps
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