Problem 66E

66. If you deposit $\$ 100$ at the end of every month into an account that pays $3 \%$ interest per year compounded monthly, the amount of interest accumulated after $n$ months is given by the sequence

$$I_{n}-100\left(\frac{1.0025^{*}-1}{0.0025}-n\right)$$

(a) Find the first six tenms of the sequence.

(b) How much interest will you have earned after two years?

Step-by-Step Solution