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Jay just graduated from college and he has decided to open a retirement account that pays 1.75% interest compounded monthly. If he has direct deposits of $100 per month taken out of his paycheck, how much will he have in the account after 42 years?

Respuesta :

Answer:

$51,282

Step-by-step explanation:

100*1.75%=1.75*504 months (42 years)=882

100*504 months (42 years)=50,400

50,400+882=$51,282

Hope this is correct, and helps you out :)

He will have $74,356.50 in his account.

what is interest?

Interest is the price you pay to borrow money or the cost you charge to lend money.

Initial investment (PV)= $100

Number of periods (n)=42 years

Interest rate (i)= 1.75%

So, FV= P(1+r/100)^(nt) -1)) / (r/n)

FV= 100(1+0.0175/100)^(12*42) -1)) / (0.0175/12)

FV= $74,356.50

Learn more about this concept here:

https://brainly.com/question/23064365

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