Question

Assume you put $500 per month into a retirement account for 13 years, and the account has an APR of 3.06% compounded monthly.

What is the account balance at the end of the 13 years? Round your answer to the nearest cent.

How much of the money in the account at the end of the 13 years is your personal investment, meaning that the money came directly from you?

How much of the money in the account at the end of the 13 years is interest?

What percentage of the account balance after 13 years is interest? Round your percentage to one decimal place.

Answer 1

Ans a)	account balance at the end of the 13 years
	Put in calculator
	PV		0
	PMT		-500
	I	3.06%/12	0.255%
	N	13*12	156
	compute FV		$95,645.64
	ans =		$95,645.64
Ans b)
	money came directly from you
	500*156		$        78,000
	ans =		$        78,000
Ans c)	Interst amount =		$17,645.64
	95645.64-78000
	ans =		$17,645.64
Ans d)	% of interest =		18.4%
	17645.64/95645.64
	ans =		18.4%