Kyler isn't getting any younger! He decides it's time to start saving for his future and deposits $225 each month at 6.2% annual interest for 25 years. At the end of 25 years, he has an account balance of $160,811.43. How much of this did Kyler contribute and how much of this is interest?

Question

Social Studies

Bree

20 January, 08:46

Kyler isn't getting any younger! He decides it's time to start saving for his future and deposits $225 each month at 6.2% annual interest for 25 years. At the end of 25 years, he has an account balance of $160,811.43. How much of this did Kyler contribute and how much of this is interest?

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Alyvia · Answer 1

The best answer to the question: How much if this did Kyler contribute and how much of this is interest, would be: 93.311.43 would be the total amount accrued by Kyler at the end of the 25 years of saving if the annual compound rate is maintained at 6.2%, and the rest would be the net savings done by Kyler if he maintains the rate of savings at 225 per month for all of the 25 years.

Explanation:

The good thing about savings on an account with compound interest rate is that at the end of the saving period, the total amount gained will be much larger than without it. This compound interest rate is simply the extra money that a person may get for literally investing his/her money in this case on a bank account that offers that rate of interest every year. Give or take a bit from taxes, at the end of the day, Kyler got a lot more money from just compound annual interest, than from his own hand.