azaliarodriguez
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A savings account earns 7.2% (APR) interest calculated monthly, paid into the account at the end of 6 months. Mauricio deposits $300 into the account at the beginning of the first month. At the end of each month, he deposits an additional $100 into the account. How much interest will Mauricio have earned after 6 months?

Respuesta :

Jkirsten00
I think that the answer is about $19.80

Answer:

The answer is $19.80

Step-by-step explanation:

A savings account earns 7.2% (APR)

Monthly interest rate will be = [tex]7.2/12/100=0.006[/tex]

Mauricio deposits $300 into the account at the beginning of the first month.

So, $300 will be calculated with 0.006 interest.

Interest value becomes = [tex]300\times1.006=301.80[/tex]

Interest earned = [tex]301.80-300=1.80[/tex] dollars

At the end of each month, Mauricio deposits an additional $100 into the account. Means he deposits $600 in 6 months.

So, total interest on this will be = [tex]600(1.006)^{5}[/tex]

=$618

Now total interest earned will be [tex]618-600=18[/tex] dollars

Hence, total interest earned in 6 months will be [tex]1.80+18=19.80[/tex] dollars.

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