The amount is $510.12 and the interest is $10.12.
Explanation
STEP 1: Convert 120 months into years.
120 months =12012 years=10 years
STEP 2: To find amount we use formula:
A=P(1+rn)n⋅t
A = total amount
P = principal or amount of money deposited,
r = annual interest rate
n = number of times compounded per year
t = time in years
In this example we have
P=$500 , r=0.2% , n=12 and t=10 years
After plugging the given information we have
AAAA=500(1+0.00212)12⋅10=500⋅1.000167120=500⋅1.02024=510.12
STEP 3: To find interest we use formula A=P+I, since A=510.12 and P = 500 we have:
A510.12II=P+I=500+I=510.12−500=10.12
