you wish to deposit 500 per month into an account for 36 mon

you wish to deposit $500 per month into an account for 36 months. Assume your interest rate is equal to the prime interest rate. How much do you have total in the account after 36 months? How much of that total is interest?

Solution

a) How much do you have (total) in the account after 36 months?
  
Answer--- Rate= 3.25% , N= 36 periods, PMT= 500 interest= .0325/12= .0027083
500 X (1+0.0027083)^36-1/.0027083 500X37.75979083= 18,879.90
Total in the account after 36 months= 18,879.90
  
  

b) How much of that total is interest?

Answer---   500X36= 18,000   18,879.90-18,000= 879.90
Total interest is 879.90