Investment Account Calculations

The video tutorial explains how to calculate the future value of an investment with monthly deposits for eight years at a 5% interest rate compounded monthly. It then shows how to calculate the balance after an additional 10 years without deposits using the compound interest formula. The tutorial also covers how to determine the total interest earned over the entire 18-year period.

What is the monthly deposit amount in the investment scenario?

• $160

• $100

• $200

• $250

For how many years are monthly deposits made in the investment account?

• 12 years

• 8 years

• 5 years

• 10 years

What is the annual interest rate applied to the investment account?

• 3%

• 4%

• 5%

• 6%

How many times per year is the interest compounded in the investment account?

• 4 times

• 6 times

• 12 times

• 24 times

What is the balance in the account after the first eight years of deposits?

• $25,000

• $20,000

• $18,838.48

• $15,000

After stopping deposits, for how many additional years is the money left to earn interest?

• 12 years

• 5 years

• 10 years

• 8 years

What is the final account balance after 18 years?

• $35,000

• $31,027.16

• $28,000

• $25,000

How is the total interest earned over 18 years calculated?

• By dividing the final balance by the number of years

• By adding all deposits to the final balance

• By subtracting the total deposits from the final balance

• By multiplying the final balance by the interest rate

What is the total amount of deposits made over the eight years?

• $12,000

• $15,360

• $15,667.16

• $18,000

What is the total interest earned over the 18 years?

• $15,667.16

• $12,500

• $20,000

• $10,000