Answered

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?

Verified Answer :

$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

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