You deposit $500 each month into an account earning 5% interest compounded monthly.
How much total interest will you earn over 20 years?

To calculate the total interest earned over 20 years with monthly deposits of $500 into an account earning 5% interest compounded monthly, we'll use the future value of an ordinary annuity formula:

\[
FV = P \times \frac{(1 + r)^n - 1}{r}
\]

Where:
- $ P $ is the monthly deposit amount ($

Discover how to calculate the total interest earned over 20 years with monthly deposits of $500 into an account earning 5% interest compounded monthly. This problem involves the future value of an ordinary annuity formula and covers compound interest and annuities.

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