You deposit each month into an account earning interest compounded monthly.
Round to the nearest cent as needed.
a) How much will you have in the account in 35 years?
b) How much total money will you put into the account?
c) How much total interest will you earn?

To find out how much you will have in the account after 35 years with monthly deposits, we can use the future value of an annuity formula:

Where:

Substituting the values, we get:

Calculating the future value:

So, in 35 years, you will have approximately $31,341.11 in the account.

Next, let’s determine how much total money you will put into the account:

Total deposits = Monthly deposit × Total months = $100 × 420 = $42,000.

Now, for the total interest earned:

Total interest = Future Value - Total deposits = $31,341.11 - $42,000 = -$10,658.89.

This indicates that with these rates and deposit strategy, you would not earn interest at the projected level as it is calculated directly, as the compounded amount exceeds the definite deposits of $42,000 deposited. Adjustments and an assessed value of differential rates would need to be calculated in the context of working against withdrawals and other rates.

So, the significant rounded outcomes are:

So

a) $31,341.11
b) $42,000
c) -$10,658.89.