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28 October, 09:43

Joanna has been saving for retirement for 40 years. She made monthly deposits of $275 and earned 5.6% annual interest, compounded monthly. According to her account documents, after these 40 years, she has a balance of $491,730.35 in her account. How much of this did Joanna contribute and how much of this is interest?

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  1. 28 October, 11:59
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    Joanna deposited $132000 and her interest amount is $359730.35

    Step-by-step explanation:

    Monthly deposit = $275

    Interest = 5.6%

    Time = 40 years

    After 40 years her account balance = $491730.35

    If she deposit $275 monthly then after 40 years she will have deposited,

    = 275 x 12 x 40

    = $132000

    The remaining is her interest amount.

    Interest amount = 491730.35 - 132000

    = $359730.35

    Joanna deposited $132000 and her interest amount is $359730.35
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