Jeremiah has a long term savings plan. For 10 years he has been investing $150 a month, earning 4.25% interest compounded monthly. how much more would he have saved if he had chosen to make deposits of $200 a month?

The formula of the future value of annuity ordinary

Fv=pmt [ (1+r/k) ^ (kn) - 1) : (r/k) ]

Fv future value

Pmt payment

R interest rate 0.0425

K compounded monthly 12

N time 10 years

If the payment 150

Fv=150 * (((1+0.0425:12) ^ (12

*10) - 1) : (0.0425:12))

=22,381.089

If the payment 200

Fv=200 * (((1+0.0425:12) ^ (12

*10) - 1) : (0.0425:12))

=29,841.452

How much more

29,841.45-22,381.09

=7,460.36