Recently, More Money 4U offered an annuity that pays 6.3% compounded monthly. If $1,986 is deposited into this annuity every month, how much is in the account after 8 years? How much of this is interest?

So then after 8 years we will have in the account 3283.153

And in order to find the interest we can do the following operation:

Step-by-step explanation:

For this case we can use the formula for the future value using compound interest given by:

Where P= 1986 the initial amount invested. r = 0.063 represent the interest rate. n=12 represent the number of times that the rate is compounded in a year. And t =8 years . Replacing the info we got:

So then after 8 years we will have in the account 3283.153

And in order to find the interest we can do the following operation: