Assuming a 7.25% rate of return, compounded monthly, how much interest would a person earn in a savings plan that has monthly payments of $50 at the end of each month for 10 years?
$435 Why? Multiply 7.25%(0.0725) by $50 to get the monthly interest rate of $3.625 There are 12 months in a year so multiply that by 12 to find the annual interest rate of $43.5 Finally, multiply that by 10 to get the insterest rate of $435 after 10 years
