Mini$-$Project $2$

MGF$1107$

$5.$ What would happen if you deposited your selected value EVERY MONTH into the high$-$yield savings account and let it sit, with interest compounded monthly, for $10$ years?

a$)$ How much money would be in the account after $10$ years? Show your work, including listing the numeric value for each variable $(p,r,n,t).$

Hint: you want to use the following formula:

$A=\frac{p[(1+\frac{r}{n}{)}^{nt}-1]}{(\frac{r}{n})}$

$\frac{2005\text{a}\text{m}\text{o}\text{n}\text{t}\text{h}}{4,25\mathrm{.}1\text{i}\text{n}\text{t}\text{r}\text{e}\text{s}\text{t}}$

b$)$ How much money did you deposit into the account over $10$ years? You can calculate this by multiplying your value by $120(12$ months times $10$ years$).$ Show your work.

c$)$ How much interest was earned over $10$ years? You can calculate this by subtracting the total amount deposited $($your answer to part b$)$ from the accumulated amount $($the answer to part a$).$ Show your work.

$6$