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9 November, 14:58

What is the total amount in an account that has had $45 per month added into it for 30 years and grew with an annual interest rate of 8%?

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  1. 9 November, 17:05
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    Given:

    monthly balance = 45

    term = 30 years

    annual interest rate = 8%

    Simple Interest = Principal x rate x term

    Principal = 45 x 12 months = 540

    Simple Interest = 540 x. 08 x 30 = 1,296 Interest Earned for 30 years.

    Total balance = Principal + Simple Interest

    = 540 + 1,296

    Total balance = 1,836
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