alleryStart learning →A couple deposits $50 a month for 6 years into a fund that is worth $4,320.44 after the last deposit. How much of that total is interest earned?
A$1,320.44
B$3,600.00
C$4,320.44
D$720.44
Answer & Solution
Correct answer: D. $720.44
1. Six years of monthly deposits is 6 times 12 = 72 payments.
2. The money actually paid in is 72 times $50 = $3,600.
3. The interest earned is the final balance minus what was paid in.
4. That is 4,320.44 - 3,600.00 = 720.44.
5. Subtracting only 3,000 by using 60 payments instead of 72 would give 1,320.44, so the count of deposit periods matters.
_Source: OpenStax Algebra and Trigonometry (CC BY 4.0), Ch 13 "Sequences, Probability and Counting Theory", section 13.4 Series and Their Notations_
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