Beginning in​ January, a person plans to deposit ​$100 at the end of each month into an account earning 15​% compounded monthly. Each year taxes must be paid on the interest earned during that year. Find the interest earned during each year for the first 3 years.


To solve this problem, we need to calculate the interest earned in each of the first three years for the monthly deposits of $100, compounded at an annual interest rate of 15% (compounded monthly). Each year, taxes must be paid on the interest earned.

We'll follow these steps to compute the interest for each year:

### Step 1: Formula for the Future Value of Monthly Deposits
Since the person deposits at the end of each month, we

Beginning in January, a person plans to deposit $100 at the end of each month into an account earning 15% compounded monthly. Each year taxes must be paid on the interest earned during that year. Find the interest earned during each year for the first 3 years.

Learn how to calculate the interest earned on monthly deposits of $100 at a 15% annual rate, compounded monthly. This problem covers key concepts of compound interest, future value of annuities, and annual tax implications over the first 3 years. Suitable for students in Grades 10-12.

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