Gretta is saving for retirement. She deposits $125 each month at 6% annual interest for 35 years. According to her calculations, at the end of 35 years, she should have $178,088.79 in her account. How much of this did Gretta contribute and how much of this is interest?

Gretta's Contribution = $52,500

Interest = $125,588.79

Step-by-step explanation:

Gretta contributes $125 each month, for 35 years. Therefore, to find the amount she contributed, we multiply those pieces together (12 months in each year).

125 x 12 x 35 = $52,500

Therefore, over the 35 years, Gretta contributed $52,500.

If there was $178,088.79 in her account, and she contributed $52,500, then the rest is interest.

$178,088.79 − $52,500 = $125,588.79

There was $125,588.79 in interest earned on Gretta's account.

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