Traceyc --
An effective annual interest rate of 8% compounded monthly is 0.75% or
0.0075 times the principal, calculated each month. The chart below
has the principal, monthly contribution and interest paid each month.
To get month 3's total (or principal), we add:
Month 2 principal + Month 3 contribution + Month 3 interest
Month . Principal . . . Monthly . .Interest
0 . . . $5,000.00
1 . . . $5,337.50 . . . $300.00 . $37.50
2 . . . $5,677.53 . . . $300.00 . $40.03
3 . . . $6,020.11 . . . $300.00 . $42.58
4 . . . $6,365.26 . . . $300.00 . $45.15
5 . . . $6,713.00 . . . $300.00 . $47.74
6 . . . $7,063.35 . . . $300.00 . $50.35
7 . . . $7,416.33 . . . $300.00 . $52.98
8 . . . $7,771.95 . . . $300.00 . $55.62
9 . . . $8,130.24 . . . $300.00 . $58.29
10 . . .$8,491.21 . . . $300.00 . $60.98
11 . . .$8,854.90 . . . $300.00 . $63.68
12 . . .$9,221.31 . . . $300.00 . $66.41
TOTAL = $9,221.31
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Best regards,
Omnivorous-GA |