The 8% Interest Rate Investment
Young Tobias selected an 8% interest rate investment opportunity to start a savings plan. Faithfully each month he deposited $250.00 into his investment plan. This continued for 9 years. After this period of time, Tobias decided he would begin removing $250.00 per month from his account. The 8% interest is compounded monthly. Also, assume he is always able to obtain this constant rate of return. How long will Tobias be able to wthdraw the $250.00 a month before exhausting the account?
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Learn More About Compound InterestFollow the Compound Interest link in the Algebra lessons to learn the compound interest formula.
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