Margot deposits $115 each month into a 401(k) savings account paying 3.99% annually.  After 26 years, she'll have $62,844.26 in her account.  How much of this balance is interest?

To calculate how much of Margot's final balance is interest, we need to determine the total amount she deposited over the 26 years and subtract it from the total balance of the account.

### Step 1: Calculate Total Contributions
Margot deposits $115 every month for 26 years. First, we calculate how much she deposited in total over the 26 years.

\[
\text{Total contributions} = 115 \times 12 \times 26 = 35,880
\]

### Step 2: Calculate Total Interest
Now, we subtract her total contributions from the final balance to determine how much of it is due to interest:

\[
\text{Interest} = 62,844.26 - 35,880 = 26,964.26
\]

### Conclusion:
The amount of interest Margot earned over the 26 years is **$26,964.26**.

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Do you want more details or have any questions?

Here are 5 related questions:
1. How is compound interest different from simple interest?
2. How is the future value of an annuity calculated?
3. What effect does increasing the interest rate have on a 401(k) balance?
4. What would happen if Margot made larger monthly contributions?
5. How does the length of time affect the final amount in a savings account?

**Tip:** The longer the time period for investment, the more compound interest can build up, leading to larger growth over time!

Margot deposits $115 each month into a 401(k) savings account paying 3.99% annually. After 26 years, she'll have $62,844.26 in her account. How much of this balance is interest?

Learn how to calculate the interest earned on a 401(k) savings account with monthly contributions of $115, a 3.99% annual interest rate, and a final balance of $62,844.26 after 26 years. This example covers key concepts of annuities and compound interest, suitable for Grades 9-12.

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